Abstract: Taking China’s A share listed companies from the years 2011 to 2013 as the research objects, this paper tries to detect the effectiveness of China’s classfied and batched mandatory implementation of business internal control standard system from the perspective of the restraints of earnings management caused by the implementation of the internal control standard system. The results show that the mandatory implementation of the internal control standard system would have significant effects on the restraints of the degree of earnings management both through accounting choices and real activities. With the in-depth implementation of the internal control system, the degrees of the earnings management through accounting choices or through real activities are showing a downtrend year by year. This indicates that the police of the classfied and batched mandatory implementation of business internal control standard system adopted by China’s supervision department is reasonable, and it has achieved satisfactory effects.

Key words: internal control; mandatory implementation; earnings management through accounting choices; earnings management through real activities