Research on Effectiveness of Internal Control in China-based on Panel Data from the Listed Manufacturing Companies in China
Abstract:
The purpose of internal control is to ensure the safety and
integrity of corporate assets,
to comply with accounting standards and ultimately to realize the maximization
of corporate value. To achieve
these goals, internal control is effective. In order to judge the effectiveness
of internal controls of Listed Manufacturing Companies in China and find out
the deficiencies in internal control of the companies, then improvements can
be made in these areas. In this article listed manufacturing companies in China
are researched as samples and mutation empirical analysis is made. Then by building
a model to verify the the effectiveness of evaluation results. The Innovation
of this study is to discover that independent director is not independent; the
internal audit department has been given a limited mandate which affects the
effectiveness of internal control of Listed Manufacturing Companies in China.
Therefore, to achieve the objectives of internal control, some measures must
be made.
How to cite this article
Zhumei- Li, Hongwei-He and Yanli-Ma , 2013. Research on Effectiveness of Internal Control in China-based on Panel Data from the Listed Manufacturing Companies in China. Journal of Applied Sciences, 13: 3435-3438.
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