Research of internal control of Chinese enterprises based on Sarbanes-Oxley Act

• Autor(a) principal: Ma, Jun
• Data de Publicação: 2008
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/8867
• topic: Sarbanes-Oxley Act; Internal control; Empresa pública -- Public company; Chinese enterprise; Sistema de controlo interno; Empresas cotadas; Empresas chinesas

Prominent corporate scandals and bankruptcies, such as Enron and WorldCom, have occurred in the US and have led to enhanced legislation to protect investors’ interests and increase transparency of business operations in the listed companies. The Sarbanes-Oxley legislation (SOX) improved the reliability of financial reporting and established internal accounting controls, which will serve to provide reasonable assurance of such reporting. SOX enforcement marks a new epoch in which capital markets require establishment of corporate governance and information exposure. The management of these corporations must evaluate and test the internal control system effectively and results should be published in the annual report. Along with the economic development of China, Chinese enterprises face the challenge of providing effective internal financial control. In order to analyze the importance of internal control, as well as threats brought about by ignorance of internal control, this dissertation is based on a case study of UT Starcom, which analyzes the Sarbanes-Oxley Act and the influence of internal control on Chinese enterprises. Through this case study, suggestions can be made to Chinese government bodies and the management of companies to ensure their organizations utilize effective internal control systems. Despite global differences in the approach to guidance and regulation on internal control, the prospects for convergence are uncertain. The only firm point of effective internal control is fundamental prerequisites of good corporate governance.