民营中小企业内部控制浅析.doc

扬州大学本科生毕业论文英文翻译资料 学生姓名 杨俊 学号 专业 会计 班级 会计0802 论文题目 民营中小企业内部控制浅析 英文原文： Internal Control Reporting and Accounting Conservatism Mary Brooke Billings New York University Leslie Davis Hodder Indiana University 1. Introduction “This law (Sarbanes-Oxley Act) says to shareholders that the financial information you receive from a company will be true and reliable.This law says to workers: we will not tolerate reckless practices that artificially drive up stock prices and eventually destroy the companies, and the pensions, and your jobs.” In 2002, following a series of high-profile cases of corporate improprieties, the U.S. Congress passed the Sarbanes-Oxley Act (SOX), which is widely considered to contain the most important and sweeping corporate reforms since the 1930s. As can be seen from the above excerpt from President Bush’s speech, made during his signing of the Act, one of the objectives of regulators in passing SOX is to ensure the reliability of financial reporting and to prevent companies from artificially driving up stock prices to mislead investors. In this study, we examine whether the internal control reporting requirements of SOX help to enhance the quality of financial reporting by ensuring conservative accounting practices.3 Unlike Doyle et al. (2007a) and Ashbaugh-Skaife et al. (2008a), which examine the relation between internal control quality and accruals quality, we choose accounting conservatism as our measure of financial reporting quality. This is because Watts (2003a,2003b) argues that conservative accounting benefits the users of a firm’s accounting reports, by preventing managers from introducing bias and noise into contractual accounting measures in order to overpay themselves. Also, conservative accounting results in the early termination of negative NPV (Net Present Value) investments and mitigates the incentives of managers, in reporting accounting measures used in a contract, to undertake negative NPV project behavior. Therefore, t