Five ministries issued a guide to internal control experts said refinement more conducive to controlling risk

The Ministry of Finance, the SFC, the Audit Commission, the CBRC, the CIRC 26th jointly issued the "Enterprise internal Control Guidelines", together with the previous release of the "Enterprise internal control basic norms", marking the Chinese enterprise internal control system is basically built.　　Deloitte yesterday said the guidelines would help improve the quality of financial reporting for Chinese companies and reduce the risk of commercial fraud. It is reported that "the basic norms of enterprise internal control" is known as China's "Sarbanes-Oxley Act", June 28, 2008, by the Ministry of Finance, the SFC, the Audit Commission, the CBRC, the CIRC jointly issued to strengthen and standardize the internal control of enterprises, improve business management level and risk prevention capabilities, promote sustainable development of "The basic norms are designed to enhance the risk-preparedness capabilities of Chinese companies," said Liu Weijie, a national partner at Deloitte China's Enterprise Risk Management Service group. However, many companies find it difficult to implement basic specifications because of lack of application guidelines. The newly promulgated guidelines cover all aspects of enterprise management and provide clearer guidance for enterprises to improve their internal control level.　　According to a survey conducted by Deloitte China Corporate Governance Center from February 2010 to March for some 100 Chinese listed companies, 84% of listed companies believe that strengthening and perfecting internal control procedures is the best way to improve corporate governance. "In most countries, including China, laws and regulations that require all companies to comply with the appropriate financial reporting guidelines," Yang Ying, a partner at Deloitte China's Corporate risk management service, said in an interview with the Evening News reporter yesterday. One of the major risks facing companies is that they incur serious consequences for violating the guidelines. The application guideline will promote enterprises to follow these laws, regulations and standards, and effective internal control can improve the reliability of enterprise financial information. "In addition, financial statements may be affected by the risk of commercial fraud, including the deliberate falsification of financial information or manipulation of financial data by corporate management." Effective internal control can promote enterprises to comply with the relevant financial reporting guidelines, so it can effectively reduce corporate fraud risk. "Yang Ying thinks.