The Impact Of Internal Control Of GEM Listed Enterprises On The Quality Of Accounting Information

Accounting information quality has always been a focus of attention as it can effectively safeguard the interests of investors and contribute to the orderly development of capital markets.In the 21st century,after Enron,WorldCom and many other large enterprises were exposed to financial fraud,the US introduced the Sarbanes-Oxley Act,which contains clear provisions on internal control,From 2006 to 2012,the two stock exchanges in China also promulgated and introduced bills and supporting guidelines on internal control,However,internal control issues have not been effectively addressed in China and financial frauds caused by internal control deficiencies are commonplace,and many of them occur in the GEM market,hence the need to pay attention to the information quality situation and the construction of the internal control system in the GEM market.With the implementation of the registration system on the GEM in 2020,the regulators will only conduct formal reviews of listed stocks and will no longer make substantive risk-value judgements,so the importance of focusing on the quality of internal controls and information disclosure is clear.This paper focuses on the impact of internal control and accounting information quality and focuses on the GEM market.Through the analysis of literature,the existing relevant literature in the world is somewhat sorted and summarised,and then after studying and summarising previous studies,the impact role of accounting information quality is analysed according to various aspects of internal control and the perspective of information disclosure of internal control respectively.After that,based on relevant data and research materials,the development of GEM in recent years,the characteristics of enterprise industry distribution and the issue of internal control construction are further summarised and analysed.On the basis of the previous article,Chapter 5 mainly employs the method of case analysis,selecting Xintai Electric of GEM as the research object to analyse the case of information distortion caused by enterprise internal control deficiencies.It is found that the internal control environment,the ability to assess risks,the execution of control activities,the smoothness of information and communication within the enterprise,the effectiveness of internal supervision,and the timeliness and completeness of disclosure of internal control information all have an impact on accounting information quality,in terms of whether the information is true,reliable,complete and transparent.Finally,we propose solutions to the internal control problems currently prevalent in GEM enterprises,in order to increase management’s focus on internal control building and information disclosure,so as to provide a higher degree of protection for the quality of accounting information,safeguard the legitimate rights and interests of investors and promote the stable operation of the capital market.