aper sets up the preliminary model of XBRL taxonomy about internal control report according to “Basic Norms for Enterprises’ Internal Control”, as shown in the following Tables 1-5.

5. Conclusions

In recent years, enterprises’ internal control has attracted widespread attention. Internal control plays a key role

Table 1. Control environment.

Table 2. Risk assessment.

Table 3. Control activities.

Table 4. Information and communication.

Table 5. Internal monitoring.

in improving the internal management of enterprises, protecting the integrity of their assets, preventing and controlling various risks. COSO report and SOX act make requirements for enterprises to disclose information of internal control. The Ministry of Finance of China and other four departments jointly issued “Basic Norms for Enterprises’ Internal Control” in 2008. It requires listed companies to disclose self-assessment report and attestation report of internal control. But actually, there are some problems on the design and disclosure of internal control. The characteristics and application of XBRL offers a new opportunity for enterprises to strengthen their internal control.

Based on national laws and regulations of internal control, this article analyzes advantages of using XBRL as a disclosure measure of enterprises’ internal control report and sets up preliminary model of XBRL taxonomy about internal control report to provide a comparable basis for full implementing “Applicable Guidelines for Enterprises’ Internal Control”. The preliminary model is also the core and contribution of this article.

But this research is not in depth. With the continuous improvement of XBRL taxonomy, the interoperability of it is also growing constantly. In 2007, the Securities and Exchange Commission (SEC), Japan’s Financial Service Agency (FSA) and the International Accounting Standards Committee Foundation (IASCF) jointly launched “Interoperable Taxonomy Architecture”. Therefore, when we are setting up XBRL taxonomy about internal control, we should fully consider the interoperability of XBRL taxonomy. This is a direction of our further research.

References

  1. Fang, H.X. and Sun, H. (2007) Information Disclosure of Internal Control in the Rule of Mandatory Disclosure. Journal of Financial Research, 12, 68-73.
  2. Tian, G.L., Qi, B.L. and Li, L.C. (2010) Influencing Factors Research of the Disclosure of Internal Control Weakness. Nankai Management Review, 13, 134-141.
  3. Zhou, S.H., Hu, W.M., Ling, B. and Liu, C.L. (2013) Research of China’s Listed Companies’ Internal Control in 2012. Journal of Accounting Research, 7, 3-12.
  4. Yang, Y.H. and Wang, W. (2008) Information Disclosure Research of Internal Control of Listed Companies in Shanghai Stock Exchange in 2006. Journal of Accounting Research, 3, 35-42.
  5. Yang, Y.H. and Chen, L.Y. (2009) Self-Assessment Research of Internal Control of Listed Companies in Shanghai Stock Exchange in 2007―Data Analysis and Policy Suggestions. Journal of Accounting Research, 6, 58-64.
  6. Feng, J. and Cai, C.G. (2008) Information Disclosure Research of Listed Companies’ Internal Control. Science of Fi- nance and Economics, 5, 80-87.
  7. Gao, J.P. (2008) Creating Model Research of XBRL Taxonomy in China. Journal of Shanxi University of Finance and Economics, 5, 80-87.
  8. Yang, Z.N., Zhu, J.G., Liu, F., Sun, F. and Zhao, Y.J. (2010) Research of Theoretical Basis and Methodology System of XBRL Taxonomy Certification. Journal of Accounting Research, 11, 10-15.
  9. Ying, W., Wang, D., Huang, M. and Wang, Y. (2013) Architectural Model Research of XBRL Taxonomy. Journal of Accounting Research, 8, 3-9.
  10. Bovee, M., Ettredge, M.L., Srivastava, R.P. and Vasarhelyi, M.A. (2002) Does the Year 2000 XBRL Taxonomy Accommodate Current Business Financial-Reporting Practice. Journal of Information Systems, 16, 165-182. http://dx.doi.org/10.2308/jis.2002.16.2.165
  11. Bovee, M., et al. (2005) Fiancial Reporting and Auditing Agent with Net Knowledge (FRAANK) and eXtensible Business Reporting Language (XBRL). Joumal of Information Systems, Spring, 19-41.

Journal Menu >>