Study of the financial fraud early-warning based on Internal Control Evaluation System subtitle as needed

摘要

In this paper, an Internal Control Evaluation System is constructed based on internal control five elements, and empirical analysis on the quality of internal control of the previous year is performed to a Shenzhen-listed company by using entropy method, and this company has financial fraud in 2008–2009. The research indicated that the fraud probability is great when the quality of internal controls of the previous year is low, and internal control can play a role in early warning of financial fraud. However, on the whole, the listed company's internal control quality is not high, there is still a need for the building of the system to continue to improve the system of internal control, and effectively increase the Company's internal control, so that internal control can better play a financial fraud early warning role.