Additional File 1: Sample Questionnaire

Additional file 1: Sample Questionnaire Part 1: Personal Information 1. Age 1) under 30 2) 31-40 3) 41-50 4) 51-60 5) Over 60 2. Job title 1) Chairman 2) CEO 3) CFO 4) COO 5) Financial Manager 6) Internal Auditor 7) Member Staff of Financial Department 8) Member Staff of Operating Department 9) Risk Management and Internal Control Department 10) Other (please specify) 3. Highest Degree 1) Diploma 2) Bachelor 3) MBA\MPAcc 4) PhD 4. Nature of your company 1) SOEs 2) Private Enterprises 3) Foreign Enterprises 4) Joint Ventures 5) Others (please specify) 5. Group nature of your company 1) Group Companies 2) Subsidiaries 3) Single Business Entities 4) Others (please specify) 6. Listing status of your company 1) Domestically listed 2) Listed in Hong Kong 3) Listed Oversea 4) Unlisted 7. Total Assets (in RMB) 1) Ten billion 5) Unclear 6) Other (Please specify) 8. The annual operation revenue scale in your company (in RMB): 1) < One billion

1 2) One billion – Ten billion 3) Ten billion – Fifty billion 4) > Fifty billion 5) Unclear 6) Other (Please specify) 9. Your Company address (City) 10. The main industry of your company 1) Farming, forestry, animal husbandry and fishery 2) Mining 3) manufacturing 4) Electricity, gas, water production and supply 5) construction business 6) Transportation, storage and postal industry 7) Information transmission, computer service and software industry 8) Wholesale and retail trade industry 9) Accommodation and catering industry 10) realty industry 11) Leasing and business services industry 12) Other 11. If the full mark is 100 points, please grade the internal control of your company ______Part 2: General Information on Internal Control Items Evaluation score The basic situation of internal control in your Neither agree company Disagree nor disagree Agree 1．Internal control system is very sound 1 2 3 4 5 6 7 2．The top leadership attaches great importance to the internal control system 1 2 3 4 5 6 7 3．The internal control is highly efficient 1 2 3 4 5 6 7 4．The operation of internal control system has a clear lead department 1 2 3 4 5 6 7 5 ． The efficiency of internal control would benefit from the establishment input of internal control system 1 2 3 4 5 6 7 6 ． The efficiency of internal control wound benefit from the running time of internal control system 1 2 3 4 5 6 7 7．The main objective of carrying out internal control is to comply with the relevant regulatory requirements 1 2 3 4 5 6 7 8 ． The internal control system is closely integrated with other management process 1 2 3 4 5 6 7 9．Internal control evaluation is authentic 1 2 3 4 5 6 7 10 ． internal control evaluation is related with performance appraisal 1 2 3 4 5 6 7 11．Overall, the internal control is very effective 1 2 3 4 5 6 7

2 Part 3: The Elements of Internal Control Items Evaluation score Control Environment Neither agree Disagree nor disagree Agree 1．The chairman's duty is clear 1 2 3 4 5 6 7 2．The general manager 's duty is clear 1 2 3 4 5 6 7 3. Chairman and general manager make a very good combination 1 2 3 4 5 6 7 4 ． The board of supervisors can play a supervisory function effectively 1 2 3 4 5 6 7 5．Independent director can play a supervisory function effectively 1 2 3 4 5 6 7 6．The audit committee has its independence 1 2 3 4 5 6 7 7 ． Senior managers can implement the internal control system resolutely 1 2 3 4 5 6 7 8 ． Senior managers have the ability that match with their job 1 2 3 4 5 6 7 9 ． The company can motivate senior managers effectively 1 2 3 4 5 6 7 10 ． The company can motivate the general staff effectively 1 2 3 4 5 6 7 11 ． The internal audit organization can find the significant deficiency in internal control 1 2 3 4 5 6 7 12 ． Senior managers play a leading role in the construction of enterprise culture 1 2 3 4 5 6 7 13. The right , responsibility and interest of departments are matching 1 2 3 4 5 6 7 14．Overall, the internal environment of your company provides a good basis for the operation of internal control 1 2 3 4 5 6 7 Risk Assessment Neither agree Disagree nor disagree Agree 1 ． The company have a complete risk assessment system 1 2 3 4 5 6 7 2．The company have a sound risk assessment system 1 2 3 4 5 6 7 3 ． The identification of internal risk is accurate and effective（Such as financial, staff , etc） 1 2 3 4 5 6 7 4 ． The identification of external risk is accurate and effective（Such as law, environment, etc） 1 2 3 4 5 6 7 5．The company has scientific and reasonable analysis standard on different categories of risk 1 2 3 4 5 6 7 6．The work of risk analysis team is normative 1 2 3 4 5 6 7

3 7．When finding the major operational risk or market risk, the senior management can take the corresponding risk response measures promptly 1 2 3 4 5 6 7 8．The risk response strategy is adjusted periodically 1 2 3 4 5 6 7 9 ． Overall, the risk assessment of your company is very accurate 1 2 3 4 5 6 7 Control Activities Neither agree Disagree nor disagree Agree 1． Your company has the working system that make departments perform their respective roles, responsibilitie, and restrict each other 1 2 3 4 5 6 7 2．Your company set up post according to the principle of the separation of incompatible posts 1 2 3 4 5 6 7 3 ． The phenomenon that violating the authorized examining and approving system doesn’t exit 1 2 3 4 5 6 7 4 ． Your company strictly limit the unauthorized personnel to contact and dispose of property 1 2 3 4 5 6 7 5 ． Your company has a protection control system of limited approach and periodic review for the assets 1 2 3 4 5 6 7 6. Your company can take appropriate actions on the exceptions in violation of control 1 2 3 4 5 6 7 7 ． The business transaction without normal examination and approval procedures will never happen 1 2 3 4 5 6 7 8 ． Employees’ compensation and post are closely related to the performance appraisal results 1 2 3 4 5 6 7 9 ． Your company has established a complete risk emergency plan 1 2 3 4 5 6 7 10．The following control process in your company is effective 1 2 3 4 5 6 7 (1) Monetary fund control 1 2 3 4 5 6 7 (2) Purchase and payment control 1 2 3 4 5 6 7 (3) Sales and receivables control 1 2 3 4 5 6 7 (4) Inventory control 1 2 3 4 5 6 7 (5) Project control 1 2 3 4 5 6 7 (6) Fixed assets control 1 2 3 4 5 6 7 (7) Cost control 1 2 3 4 5 6 7 (8) External investment control 1 2 3 4 5 6 7 (9) Financing control 1 2 3 4 5 6 7 (10) Security control 1 2 3 4 5 6 7 (11) Control on the financial and accounting report preparation system 1 2 3 4 5 6 7

4 (12) Information disclosure control 1 2 3 4 5 6 7 (13) Budget control 1 2 3 4 5 6 7 (14) Contract control 1 2 3 4 5 6 7 (15)Control on the subsidiary company 1 2 3 4 5 6 7 (16)Control on the human resources policy 1 2 3 4 5 6 7 (17)Control on the computer information system 1 2 3 4 5 6 7 (18)The effectiveness Evaluation of the overall control system 1 2 3 4 5 6 7 11．Overall, the control activities of your company is very effective 1 2 3 4 5 6 7 Information and Communication Neither agree Disagree nor disagree Agree 1 ． Your company can obtain external information quickly (such as: suppliers, customers, competitors change, new laws and regulations, economic environment change ,etc) 1 2 3 4 5 6 7 2 ． Your company often take the initiative to communicate with the outside world 1 2 3 4 5 6 7 3 ． Your company has a regular internal reporting system, to clear the information collection, analysis, reporting and handling procedures 1 2 3 4 5 6 7 4 ． The report standard to managers at all levels is known to all the staff 1 2 3 4 5 6 7 5．Your company has established effective channels to ensure that employees can transfer internal control information to senior managers timely 1 2 3 4 5 6 7 6 ． There is a good system to adopt reasonable suggestions from the staff 1 2 3 4 5 6 7 7 ． Employees can get effective incentives after proposing proper suggestions. 1 2 3 4 5 6 7 8．The internal information communication is smooth 1 2 3 4 5 6 7 9 ． Different departments realize the complete information sharing 1 2 3 4 5 6 7 10．There is a complete information system（such as ERP） 1 2 3 4 5 6 7 11．Fraud will be punished severely 1 2 3 4 5 6 7 12 ． There is a sound protection system for complainants and Informers 1 2 3 4 5 6 7 13 ． Overall, the information and communication in your company in smooth 1 2 3 4 5 6 7 Monitoring Disagree Neither agree Agree

5 nor disagree 1．Your company has a full-time staff to timely assess and take necessary actions to ensure the operation of internal control system effectively 1 2 3 4 5 6 7 2．All items are assessed properly and regularly 1 2 3 4 5 6 7 3 ．Your company has an internal audit department to evaluate the internal economic activities and management system 1 2 3 4 5 6 7 4 ． The internal audit department will audit and evaluate the internal economic activities and management system regularly 1 2 3 4 5 6 7 5．The daily supervision will form a written report 1 2 3 4 5 6 7 6．The special supervision outcome is announced to the public 1 2 3 4 5 6 7 7 ． There is an accountability system when Internal control deficiencies are found 1 2 3 4 5 6 7 8．The self-evaluation report of internal control is true and complete 1 2 3 4 5 6 7 9．The company will Hire external audit institutions to issue opinions on the evaluation report of internal control 1 2 3 4 5 6 7 10．Overall, the effect of internal supervision in your company is very good 1 2 3 4 5 6 7

Part 4: The Impact of Internal Control on Corporate Operation Items Neither agree Disagree nor disagree Agree Compared with the non-establishment of internal control system, the following circumstances appear in your company: 1．The firm value increases 1 2 3 4 5 6 7 2．The efficiency of resource allocation improves 1 2 3 4 5 6 7 3．The efficiency of the purchase and sale improves 1 2 3 4 5 6 7 4. The decision procedure of new project investment is more scientific, and approved properly 1 2 3 4 5 6 7 5．The process of project management is clear, and the effect is obvious 1 2 3 4 5 6 7 6．The budget making work is more smooth 1 2 3 4 5 6 7 7 ． The recognition of performance evaluation outcomes 1 2 3 4 5 6 7 8．The number of unfair related transactions decrease 1 2 3 4 5 6 7 9 ． The involving information of related party transactions is more accurate 1 2 3 4 5 6 7

6 10． The price setting of related party transactions is more reasonable 1 2 3 4 5 6 7 11．The audit of related party transactions is more strict 1 2 3 4 5 6 7 12 ． The related party transactions of external sales increase 1 2 3 4 5 6 7 13. The related party transactions of external purchase increase 1 2 3 4 5 6 7 14．Related party guarantee /debit and credit decreases 1 2 3 4 5 6 7 15 ． Accounting information transmission is more smooth 1 2 3 4 5 6 7 16 ． The accounting process is more normative , and approved properly 1 2 3 4 5 6 7 17．The credibility of accounting information increases 1 2 3 4 5 6 7 18．The credibility of Income accounting information increase 1 2 3 4 5 6 7