A Study On Construction Of Internal Control System Of Suntech Based On Risk Management

On March 20, 2013, once the industry leader Suntech Power co.,LTD. due to inability to repay maturing debt and collective complaints from creditors,was convicted of bankruptcy reorganization by local court, according to the law. Its asset-liability ratio was as high as 79%.Suntech is the first large-scale bankruptcy of China Solar Energy Group, also the world's largest business bankruptcy of solar energy companies. Such a star company which has been the industry's leading company, internationally experienced by the gloom and doom in the process and came to the point of bankruptcy reorganization. In accordance with regulatory requirements, such corporate governance should have established an internal control system, but still there has been financial fraud, bankruptcy issues.In the end how is the effectiveness of internal control of Suntech. This is the starting point of paper, to discuss the importance of internal control system of the emerging strategic industries. For companies of the emerging strategic industry, risks persist. The internal control system needs to attract attention, as an important mechanism for effective enterprise risk prevention.This paper begins with a brief overview of the research background, significance, as well as domestic and international overview on internal control theory. Secondly, organize internal control and corporate risk management and other related theories, laid the theoretical basis for the full text of research. Then make a narrative context for the events before and after the bankruptcy reorganization Suntech. Then substantive reason to study its internal control system based on bankruptcy risk management and extract advice to the emerging strategic industries enterprises to strengthen internal control system and risk management. Finally, make a summary of the full text and make the prospect of a more in-depth study.