The Impact Of Internal Control Defects On Real Earnings Management From The Perspective Of Integrated Auditing

For the management of a listed company,it usually meets its own private interests and manipulates various means to maliciously change the surplus,so that the company's own real business conditions cannot be accurately disclosed.Investors who make investment choices based on the earnings information of listed companies are easy to make wrong decisions,infringe on the interests of small and medium investors,and are not conducive to the healthy development of the market environment.Especially nowadays,violations of laws and regulations due to earnings management are very common among listed companies.The well-known Enron financial fraud incident and Green Earth,Wanfushengke,etc.,these corporate scandals were exposed to the public at the beginning of this century,the Sarbanes-Oxley Act was immediately enacted,in order to enable the public to monitor the internal control of listed companies The bill mandates that listed companies need to disclose information about internal control to the public,which has led scholars to pay attention to the relationship between internal control and earnings management.Subsequently,the relevant guidelines for the integration of financial report audit and internal control audit were formulated,and the concept of integrated audit was introduced for the first time.As a relatively innovative auditing model,integrated auditing itself can make full use of the internal auditing and risk-oriented financial reporting auditing based on risk assessment,which has a good practical basis for its application in real-life activities..This paper focuses on the construction of China's current internal control system,reviews and summarizes the domestic and international research results of internal control research of listed companies,and the scholars' analysis of the motives of real management of corporate management,and finds the defects of internal control of listed companies.There is a positive correlation effect on real earnings management,and further explores the seriousness of internal control defects in enterprises,which also aggravates the degree of real earnings management of enterprises.After reviewing the literature and analyzing the relevant theoretical knowledge,it is found that whether the enterprise adopts the integrated audit mode and other factors has weakened the management's real earnings management.We verified the three hypotheses proposed through empirical research.This paper collects the financial indicators of Shanghai-Shenzhen A-share listed companies in the past five years,and deeply analyzes the shortcomings of China's current listed companies' internal control information disclosure,and the adverse effects of the existence of these defects on the quality of corporate earnings information.Based on the analysis of existing problems,this paper proposes targeted measures for listed companies,government regulatory authorities,and accounting firms to overcome the above shortcomings,which is conducive to promoting listed companies to improve governance structure and establish sound internal control.Theoretical and practical significance.