The Effectiveness of the Internal Control: A Research from Inside Auditing Environment Perspective

Abstract

With the high speed development of the social economy, it brings a series of problems of financial fraud which are resulted by the fail of the internal control. In older to decrease those kinds of matters, it is urgent for corporations to ensure that their inside auditing and internal controlling are actually valid. As a basic element of the internal control, the inside audit environment should have a good regulation. In this paper, it will discuss the importance of the intern environment in corporation's inside control, and then will build up an evaluation index tabulation. We analyzed some correlative elements which would affect the inside controls to build up a more detailed evaluation index tabulation, because the current evaluation index system are not really complete in China. According to the research results, it will be clear for companies to predict and conclude whether the inside control in the corporate have an effective impact. It also can help to verdict the reasons for the failure of internal control.