Research On Enterprise Internal Control Evaluation Under ESG Report Framework

The report of the 20th CPC National Congress pointed out that high-quality development is the primary task of building a modern country in an all-round way.From the perspective of enterprise development practice,green and sustainable development has become an important way to improve the quality of development.Several ministries and commissions have also issued relevant policies to improve the quality of enterprises.The most representative is the establishment and improvement of ESG information disclosure system with Chinese characteristics proposed by the SASAC and the introduction of ESG valuation concept by the CBRC to promote the development of green finance.The ESG evaluation system has the concept of green and sustainable development,conforms to the high-quality development requirements of enterprises,covers the comprehensive information disclosure mechanism of enterprises,and gradually becomes an important reference for measuring enterprise performance and long-term value.However,at present,the internal control information disclosure of listed companies in China pays attention to the identification of financial defects and ignores the evaluation of non-financial information disclosure and internal control of enterprises.The specific performance is the general description of non-financial information disclosure and the lack of evaluation conclusions on the internal control defects of non-financial information,which makes the overall quality of the internal control evaluation report of enterprises low.Therefore,the research on enterprise internal control evaluation based on the ESG report framework will help broaden the non-financial perspective of the traditional internal control evaluation system and promote the integration of ESG and internal control governance,which has certain theoretical and practical significance.Based on the sustainable development theory,social responsibility theory and information asymmetry theory,this paper explores the relationship between the ESG reporting framework and the relevant requirements of the internal control evaluation guidelines in terms of structure and content,according to the Basic Standards for Internal Control of Enterprises,the Guidelines for the Application of Internal Control of Enterprises and the Guidelines for Environmental,Social and Governance Reporting(ESG Guidelines)issued by the Stock Exchange of Hong Kong,It also analyzes the specific correlation between the content of ESG report framework and internal control evaluation from the aspects of cost-effectiveness and environmental protection policy at the environmental level,external information user decision-making and control subjects at the social responsibility level,and the board of directors and audit at the governance level,and then constructs the internal control evaluation index system under the ESG report framework.By sorting out the 2021 ESG report,annual report and internal control report disclosed by 92 A+H share companies listed before 2020 and conducting statistical analysis,this paper applies the coefficient of variation method to establish the weight coefficient of relevant evaluation indicators,establishes an operational evaluation model and reference standards,and then verifies the model with the method of multiple case studies,It is mainly through the evaluation and application of six enterprises with different internal control situations in the two industries of special equipment manufacturing and coal mining and washing,which are listed in both A shares and H shares.First,the evaluation results are compared and analyzed in the industry to study the internal control differences caused by different ESG performance in the same industry,and then all the evaluation results are compared with the current authoritative internal control evaluation index,To analyze the practicability and rationality of the evaluation system.The study found that the ESG report framework and the current enterprise internal control evaluation system have certain relevance in content and structure,which shows that it is reasonable to build an enterprise internal control evaluation system based on the ESG report framework in theory,and the results of multiple case studies show that the results obtained under the evaluation system set in this paper are basically consistent with the results of the internal control evaluation of Dibo.In addition,this evaluation system has strengthened the evaluation of environmental and social responsibilities,which will inevitably make the overall evaluation result low,and from the actual results,it is in line with the theoretical expectations.Both theoretically and practically,the enterprise internal control evaluation system based on the ESG reporting framework proposed in this paper is scientific and innovative,broadens the scope of internal control evaluation to a certain extent,strengthens the focus of internal control evaluation on non-financial information,and can provide reference ideas for the integrated research of ESG and internal control.