Research on the Factors Influencing the Quality of Internal Control Information Disclosure in China

Abstract

An increasing number of financial fraud scandals have burst, and the effectiveness of internal control of listed companies has been questioned. Therefore, both listed companies themselves and external information users such as investors and bondholders are in urgent need of finding a reliable and reasonable way to understand the enterprise's internal control status. From the perspective of listed companies, the disclosure of internal control information is the first way for the managers to complete the fiduciary duty, and secondly, it is an important way to enhance the managers' awareness of internal control. From the perspective of external information users, disclosure of internal control information can provide information which can help the investors to make decisions besides the information of the financial report. At the same time, it can also increase the reliability of the financial reports used by the investors. Based on the analysis of the influencing factors and existing problems of disclosure of internal control information in China, then we making some suggestions.