Research On The Relationship Between Internal Control And Financial Restatement Under The Background Of CFO Power

As an important manifestation of corporate accounting information,financial reports can comprehensively reflect the financial status and operating results of an enterprise.In recent years,more and more financial fraud cases make the regulatory agencies pay more attention to the listed companies' financial restatement behavior,which means the company previously disclosed financial report information had some flaws or mistakes,not very reliable,The accuracy of corporate financial reporting is one of the way to demonstrate company's economic strength and develop stability.As the main factor that affects the true and reliable financial report of the enterprise,internal control has great research value in the analysis of corporate financial restatement.as the author and reporter of corporate financial reports,CFO is the director-general compared with other senior managers for the preparation of financial reports,CFO has a better understanding of the enterprises' financial status and more information superiority.Therefore,we believe that the power of the CFO has a great influence on the occurrence of corporate financial restatements in the increasingly complicated internal structure of the enterprise.This paper increases the variable index of CFO's power when considering the influence of internal control quality on financial restatement,and then studies the relationship between internal control quality and financial restatement under the power of CFO.Firstly,this paper reviews the related literature about financial restatement and analyzes the consequences?the motives and the influencing factors caused by the financial restatement,Based on the relevant theories,this article makes assumptions and selects the data of the listed companies in our country from 2010 to 2015 as the study sample.According the causes of financial restatements,the paper divides the financial restatements into error categories and non-error category financial restate ments,we can k now that the better the internal control quality is,the less likely the financial restatements and the error categories financial restates are;at the same time,the paper further introduce the variable index of CFO's power,analyzing the relationship between CFO's power and restatement,and on this basis analyzing whether the influence of internal control quality on the financial restatement in different CFO powers is different.According to the principal component factor analysis method to classify the power of CFO,comparativing analysis of the relationship between the quality of internal control and financial restatement in different CFO's power sample groups,This paper verify that the power of CFO will reduce the quality of internal control on financial restatement inhibition.The innovation of this paper mainly analyzes the influence of internal control on different types of financial restatements based on the analysis of the relationship between internal control and financial restatement.As the author of the financial report,CFO's power and status will directly affect the financial restatement,this paper takes the power of CFO as the adjustment variable and analyzes whether the influence of internal control quality on the financial restatement in different CFO powers is different,which enriches the research data in this field.