Research On The Effectiveness Of Internal Control System In Central Enterprises

Identifying and distinguishing the effectiveness of internal control system is an important grasp of anti-corruption of enterprise system.At present,most of the scholars' research on the effectiveness of the internal control system focuses on the construction of the evaluation index of the effectiveness of the internal control system.From the perspective of investors,this paper focuses on the quality of information disclosed in the internal control evaluation report of enterprises,in order to judge the effectiveness of the internal control system of enterprises.This paper selects the internal control evaluation reports of 283 listed companies of the central enterprises from 2015 to 2017 as a sample,and analyzes the overall situation of annual disclosure and the overall situation of industry disclosure.The paper chooses the listed companies of manufacturing central enterprises which disclose the information of five elements of internal control relatively completely.And,it carries out text data mining with the help of ROST CM software,a text mining tool.The purpose of text mining is to identify the specific information of internal control that investors can get from the reports by combining high-frequency words and semantic network diagram.Based on the "Basic Standards for Internal Control of Enterprises"and the "Guidelines for the Application of Internal Controls" with 18 Specific Businesses,this article constructs evaluation elements to judge whether the internal control information acquired by investors is comprehensive and complete,and then judges the effectiveness of the internal control system of central enterprises.The conclusions and contributions of this paper are as follows.Firstly,the study found that among the 283 central enterprises listed companies,271 companies disclosed the 2017 internal control evaluation report,and the other 12 did not disclose.This shows that under the current mandatory disclosure requirements,most of the listed companies in central enterprises have complied with the disclosure of internal control evaluation reports.Secondly,it found that only 61 of 271 listed companies of central enterprises which disclosed the internal control evaluation report in 2017 disclosed the business and matters of the evaluation in detail.Most central-enterprise listed companies have not made the detailed disclosure,which makes it impossible for investors to obtain comprehensive and complete internal control information from the report.Thirdly,the research results show that the listed companies with detailed disclosure of internal control evaluation reports do not have a complete description of the main business and matters of the five elements of internal control.The detailed disclosure of internal environment and control activities is superior to risk assessment,information and communication,and internal supervision;the disclosure of various management systems is better than the disclosure of implementation.This study provides research support for investors and other interested parties from focusing on the disclosure form of internal control evaluation report to focusing on the disclosure content and quality.