Internal Control Ineffectiveness And Countermeasure Research Of JQ

Listed companies in our country have general social publicity.The proper operations of listed companies affect not only shareholders’interests,but also the development of social economy.If we review the development process of listed companies,it can be found that public firms like Lantian(蓝田股份),Guangxia Industry(银广厦)and China Aviation Oil(中航油)were faced with complicated and ever-changing capital market environment.The influence of business failures and some other reasons collectively lead to incessant cases of financial statement manipulations even though such behavior is forbidden.As a result,public companies have long been regarded as machines for misappropriating money,shadowing the entire capital markets.Financial frauds of public companies set obstacles for the markets to function properly especially the function of financing.Financial frauds not only deteriorate financial statement users’judgement,they also cause serious damage to the society.Therefore,financial frauds need to be suppressed.Author thought that the completeness and execution of internal controls directly affect the authenticity of accounting information.The most important reason that such problems exist is the deficient and ineffective internal controls.The completeness and execution of internal controls are gradually becoming the focus of government regulatory agencies.Hence,this article will make suggestions about how to improve public companies’internal controls based on deep analysis of the phenomenon and causes.JQ will be the object of study. This article will first make a brief introduction of JQ’s basic information and its current internal control systems. Then I will analyze how corporate governance, internal control systems and operation procedures together affect internal control ineffectiveness based on its current conditions. Next implicit and explicit causes of ineffective internal controls are elaborated. Afterwards I will propose possible solutions to JQ’s ineffective internal controls with reference to some other existing theories. All these research and analysis aims at seeking measures against risk, making internal controls feasible and enabling sustainable improvement of their efficiency and effects. The research done in this article has reference value for JQ with respect to improve internal control effectiveness and propel the company’s development. Those theories mentioned in the article are generalized and summarized. The article includes specialized research and analysis regarding JQ’s audited financial statements and auditor’s opinions. We eventually reach some feasible conclusions.China’s capital markets are experiencing development and advancement. The development and evolution of public companies in China are yet immature. What measures should we take to strengthen the internal controls of listed companies? How should we adjust corporate structures and management in order to handle stricter international auditing systems? The answer to these questions is of practical and innovative significance to JQ and companies similar to it.