| Summary: | 碩士 === 國立中正大學 === 高階主管管理碩士在職專班 === 99 === Summary
Securities and Futures Bureau stipulates the regulation that since 2004 the "Statement of Internal Control System" of all listed & OTC companies has to be approved by the BOARD before the end of April annually, and complete the registration with the prescribed format in Securities and Futures Bureau website、Annual Report and the Prospectus.
In order to enforce the internal control responsibility of the company and the owner， it will be under criminal prosecution for providing false data and information. It is aimed to put into effect for the company's self-control mechanism, and to adjust the applicability of the current internal control system in the speedy changing environment. According to the above, it shows that the society already has more awareness on the internal control, internal control self-assessment, and internal control system statement.
Focus on the "Statement of Internal Control System" of 92~98 listed and OTC companies, uploaded in the Bulletin of "Market Observation Post System", indicating the significant deficiencies and the ratifications from FSC, the text attempts to have further analysis to explore the hidden information through case study.
The result shows that FSC’s action has much more influence in the market. When listed and OTC companies upload the "Statement of Internal Control System" of the previous year to MOPS, with the exposure of critical deficiencies, it affect nothing to the investors, since it is just a past wording. However, when the action of ratification is from FSC, the event becomes damage immediately, and the impact will soon be reflected in the stock price, to disturb a negative and abnormal return in the next few days.
By indicating the deficiencies of internal control statement, the text is also sorting out the "subsidiaries Supervision operation", "sales and collection cycle," "positions authorized and agent system" and other subjects to the public, as the reference for company’s internal control standards and internal audit.
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