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财务报告内部控制的有效性 Effectiveness of Internal Controls Over Financial Reporting

时间:2018-02-19 16:35来源 作者:英国论文网 点击联系客服: 客服:Damien
1. Introduction 简介
In 2001, Enron reaffirmed that their previous financial report had to revise as accounting errors existed in their computer system. After that, Enron the largest US corporate with assets of $63.4 billion faced the end road of bankruptcy suddenly. Four thousand employees face losing theirs job and retirement pays (Benston, 2002). It is not merely one person can break a solid business structure. The result of investigation shows this case was a corporate scandal. The Enron's top executive empowered the employees to manipulate the stock price.
As a result, the Sarbanes-Oxley Act was legislated because of the fraud behaviors which created by Enron. President Bush described this scandal as the "most far-reaching reforms of American business practices since the Great depression" when he signed SOX Act (Hays 2003, cited in Eichar S. 2009, p.1). It seems likely that the weak internal control system were has ability to prevent the accounting scandal happening. Moreover, the top managers did not function effectively in order to monitor theirs company's financial condition as well as involving in accounting scandal. Another problem is that the managers' ethics behavior needs to be tested and considered. The main purpose of SOX Act is to prevent a fraud such as Enron case happening again, whereas some people have the skepticism with SOX Act that can still work for modern corporation. This paper attempts to analyse that internal control was generally become more effective since the Enron scandal.
2. Accounting Information Systems 会计信息系统
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has a definition on internal control "that as a process is designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations." (责任编辑:cinq)

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