an effective and robust system of internal controlan effective and robust system of internal control

This maximum exists between LnASSET and LER, which is less than the threshold of 0.800. 2) Physical controls are concerned with limiting Barnett and Salomon (2012) [37] found that the relationship between CSR performance and enterprises financial performance is U-shaped, enterprises with low CSR performance have higher financial performance than enterprises with moderate CSR performance, but enterprises with high CSR performance have the highest financial performance. The risk derived from CSR aggravates the risk level of enterprises and broadens the risk boundary faced by enterprises. The optimistic development prospect of enterprises is often accompanied by the better CSR practices. Moreover, the effect size of the intermediary effect is about 18.78% (i.e. Chinese Application Guidelines for Internal Control No. effective, C) controls that deal with monetary compensation for employees The reason for this adoption is that enterprises are more willing to carry out technological innovation only on basis of the income, and this approach is more in line with the principle of matching income and expenditure. Section 2 presents the literature review, theoretical basis, and research hypothesis. In the numerator of formula (1), the data of donation outlay are manually collected from the non-operating expenses itemized in the notes to the financial statements. The specific calculation method is shown in formula (6). Where, the symbol represents the effect of internal control on innovation performance. The Characteristics of Effective Internal Control. For the explained variable in model 1 and model 3, the standard deviation of PATENT is 167.710, and the minimum (maximum) of PATENT is 1 (1138), indicating that the number of annual patent applications of different sample enterprises is quite different. For model 2, the correlation coefficient between the explanatory variable (IC) and the explained variable (SCPS) is 0.243 (p < 0.01), implying that internal control can be a driving force for CSR practices. When the enterprises equity is relatively concentrated, the interests of major shareholders and the overall interests of the enterprise are convergent, which improves CSR performance. The estimated coefficients on the other control variables are not statistically significant. For instance, the auditors issued the negative audit reports of internal control on Guitang Shares and other enterprises [7]. The enhancement of CSR performance will be an effective driving factor to improve innovation performance. The further analyses show that the positive effect of internal control on technological innovation is subject to the property attributes. The possible reason is that the residual control rights and residual claims of state-owned enterprises are difficult to correspond to the uncertain technological innovation choices, while non-state-owned enterprises can better solve this problem, and the technological innovation efficiency of non-state-owned enterprises is higher than that of state-owned enterprises. The economic growth theory believes that the technological progress is an important driving force for the economic growth, and the key to the technological progress lies in the scientific and technological innovation. In state-owned enterprises, internal control does not take the significant and positive effect on innovation performance. In view of the availability of data, those companies listed on the Shanghai and Shenzhen stock markets are selected as the research sample during 20122017. Meanwhile, in the process of improving innovation performance through the institutional improvement, the intermediary effect of CSR activities should be promoted. Among the control variables in model 1 and model 3, ROA (0.062), LER (0.142), GROWTH (0.052), SHRCR (0.094), SUPERVISOR (0.140), LNSALARY (0.284), LnASSET (0.443), AUDIT (0.055), STATE (0.113) are positively and significantly (p < 0.01) correlated with the explained variable (LnPATENT), respectively. Enterprises should attach importance to R&D activities, scientifically formulate R&D plans according to the requirements of market development and technological progress, and strengthen the management of the whole process of R&D activities. In model 2, L.ROA, L.LER, L.GROWTH and SHRCR have convergent conclusions with the corresponding variables in Table 4 above. 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Different from the matching of a single indicator, the propensity score matching (PSM) condenses multiple features into a propensity score value, thus facilitating the overall matching of multiple features to obtain the same or similar matching samples in terms of the main characteristic variables, so as to reduce the adverse impact of other possible interfering factors on the conclusions. In the Application Guidelines for Internal Control No. An effective internal control system provides reasonable assurance that policies, processes, tasks, behaviours and other aspects of an organisation, taken together, facilitate its effective and efficient operation, help to ensure the quality of internal and external reporting, and help to ensure compliance with applicable laws and regulations. In the state-owned sample, the coefficient on SHRCR is positive and significant (0.017, p < 0.01). Essentially, companies must determine if their ICFR are adequate enough to produce financial statements that are complete and accurate. The positive impact of internal control on innovation performance is subject to the property attributes, and the impact of internal control on technological innovation is not significant in the state-owned sample, which may be caused by the unclear ownership and management rights, and the lack of incentive and supervision mechanism [76]. This implies that CSR performance has been integrated into the construction process of internal control. The regulators encourage auditors and enterprises to add gradually the relevant contents of CSR assessment in the audit reports and self-assessment reports of internal control, respectively, so as to enhance the reliability of CSR information disclosure. The results show that the enhancement of the effectiveness of internal control is conducive to improving innovation performance, which comes from the supervision and motivation of internal control during the implementation of innovation projects, reducing those inefficient R&D projects, and strengthening the efficiency of innovation activities to improve innovation performance. As shown in Table 6, in model 1, the coefficient on IC is positive and significant (0.025, p < 0.10), showing that the effective internal control is helpful to improve the efficiency of innovation output. The coefficient on LnASSET is positive and significant (0.319, p < 0.01), implying that those large-scale enterprises often have strong R&D strength, which is conducive to improving their innovation performance. However, the standard deviation of IC is 128.960, and the maximum (minimum) of IC is 863.140 (0.000). The improvement of the effectiveness of internal control can enhance the sustainable development of enterprises to a certain extent [3]. A) should be carefully examined to see if the benefits outweigh the costs of providing such a system B) will eliminate all risks related to entity objectives C) will guarantee that the entity will meet its objectives D) can only provide an entity with reasonable assurance in achieving its This problem has been solved! Based on distinguishing the property attributes of different enterprises, this study conducts the further analyses on model 1model 3. And in the state-owned sample, the coefficient on IC is not statistically significant (0.012, p > 0.10). The implementation of internal control enables the management to effectively identify the external environmental risks, opportunities and internal resources through the risk assessment, select those high-quality innovation projects and improve the efficiency of innovation output. Internal control is an internal management system, path and intermediate mechanism to achieve the governance objectives, which can effectively alleviate the agency problem and information asymmetry at the operation level of R&D investment [21, 33]. On the basis of distinguishing the property attributes, in accordance with the PSM samples, LSDV method is used to analyze model 1model 3, and the null hypothesis that the coefficients of all individual dummy variables are zero is rejected, indicating the existence of individual fixed effect. Section 7 develops the robustness test. (2019) [18] believe that the partial content of internal control, as a specific system of corporate governance, still has a positive effect on CSR performance. In the robustness test of model 3, IC and FCSR are de-averaged according to the industry-annual standard, and the interaction term (ICFCSR) is added to model 3. Besides, to alleviate the endogenous problem caused by the reverse causality, the control variables including R&D, ROA, LER, GROWTH, LNSALARY, DTL and AUDIT are taken as the first-order lag values. Accordingly, the regression estimation results of model 1model 3 are shown in Table 4. It is necessary to explore the scientific and technological cooperation among those cross-ownership enterprises, identify the opportunities related to CSR strategies, and integrate the R&D behaviors into CSR strategies. Where, 12 represents the product of the effect of IC on SCPS and that of SCPS on LnPATENT. These above results suggest that the positive effect of internal control on technological innovation is limited by the property attributes of enterprises, and the improvement of the effectiveness of internal control in state-owned enterprises does not exert a significant effect on the performance of technological innovation. Accordingly, the statistical results of the fixed-effect models are shown in columns 2 and 3 of Table 5. Question: QUESTION 21 An effective and robust system of internal control should be carefully examined to see if the benefits outweigh the costs of providing such a system will guarantee that the entity will meet its objectives can only provide an entity with reasonable assurance in achieving its financial reporting objectives QUESTION 22 Audit data analytics (ADA) is