Research Of The Case About Internal Control Under Listing Strategy Of L Company

As the basis of the management of enterprises, internal control is not only an important symbol of modern enterprise management level, but also a reliable guarantee for the sustainable and healthy development of enterprises. The average life expectancy of private enterprises in China is less than six years; more than95% failures of corporate governance are related to the lack or failure of internal control.In this paper, L Company internal control problems are taken as research subjects to make case description of internal control objectives and internal control deficiencies before and after private enterprises’IPO. Depth analysis of the cases shows there are differences between internal control objectives before and after private enterprises’IPO; internal control deficiencies are the main obstacle to IPO of private enterprises; government and regulatory agencies can play a role in promoting the private enterprise internal control system. Finally, under the guidance from "Basic Norms of Enterprises Internal Control", improvement suggestions are given based on mentioned and involved problems of the case enterprise, as following:to improve the internal control environment, to enhance risk awareness, to establish a sound system of risk assessment, to improve and strengthen controlling, to smooth the process of information exchange and feedback, and to strengthen internal supervision.