| In recent years,China’s Ministry of Finance and other departments have issued a series of document specifications for corporate disclosure of internal control audit reports.Beginning in 2014,companies listed on the Main Board need to disclose internal control audit reports.By 2015,all listed companies in China disclosed internal control audit reports.With the emphasis on internal control by the regulatory authorities and enterprises,the internal control audit report with the credit endorsement of accounting firms is playing an increasingly important role for all stakeholders.In China,the scale of RMB loans has long accounted for about 70% of the total size of social financing.Bank loans are the most important financing method for Chinese enterprises.Banks generally understand the financial,operational,and credit status of enterprises from the financial information disclosed by enterprises.However,there are frequent financial fraud incidents in China.Although banks have perfect credit risk control mechanisms,banks still have occasional information due to information asymmetry.The capital chain is broken,bank loans are lost,and financial information can no longer meet the needs of bank loan decisions for corporate information.This paper attempts to use the combination of empirical and case studies to study the impact of auditors’ internal control opinions on bank loan decisions,to provide feasible advice to enterprises,banks,and regulatory authorities.This paper first reviews and summarizes related researches at home and abroad,and then conducts an empirical study on the relationship between internal control audit opinions and bank credit decisions of listed companies in China.Finally,Huaze Cobalt and Nickel discloses its related parties in the internal control audit report.The large amount of capital occupied and the internal control invalidation eventually led to the loss of the company’s reputation,the credit was affected,the capital chain was broken,and the case of delisting was studied.It is found that the auditor’s internal control audit opinion has certain influence on the loan decision.Under the same conditions,the company that obtains the standard unreserved internal control audit opinion can get more new than the company that obtains the non-standard opinion.Bank loans,the loan period is also longer.Finally,based on the research conclusions,relevant suggestions are put forward from the perspectives of listed companies,banks and regulatory agencies.The structure of this paper is as follows: Chapter 1,Introduction.This chapter introduces the background,significance,content,innovation and deficiencies of this research and analyzes and summarizes the domestic and foreign literatures.The second chapter is theoretical analysis.This chapter summarizes the theories related to internal control auditing and credit decision making.Chapter III,Research Design.This chapter introduces the assumptions,models,and data of empirical research.The fourth chapter is empirical research.This chapter empirically analyzes the data and explains the results.Chapter V,case study.This chapter takes Huaze Cobalt and Nickel Co.,Ltd.as a case study case.Chapter VI,research conclusions.This chapter summarizes the conclusions of this study and makes recommendations to relevant departments. |
