Analysis Of The Influence Path Of Corporate Governance On The Internal Control Of Tianmu Pharmaceutical Company

In June,2016,COSO released a 2016 version of the "comprehensive risk management framework of the revised version," which pointed out that internal control is an integral part of the overall risk management.It deepens the research of internal control,highlighting the important position of internal control in comprehensive risk management and even the listed company's business development.Generally speaking,it's the internal control that can ensure operation of production and business activities go normally,protect the safety and integrity of the Company's properties,enhance the authenticity and reliability of the accounting information of listed companies and lay a good foundation for the audit work,while the weak internal control would lead to corporate financial confusion and poor operation.There are many academic points of view of internal control.In the view of the corporate governance structure,it's not only an important part of the control environment,which is one of five elements of internal control,but also related to other elements of internal control.It has an impact on internal control from multi-angle.It's a breakthrough point to research the influence path of corporate governance on the internal control and strengthen the construction of internal control from the perspective of corporate governance structure.As the first listed company in Hangzhou,Tianmu Pharmaceutical Company is representative of the analysis of the impact of corporate governance on internal control.It was well-known in the early days,but gradually exposed some problems in the internal control after 2006,such as inefficient business activities,being issued non-standard audit opinions,being illegal repeatedly and unstable strategic objectives,which seriously affected its production and operation.In depth exploration,it can be found that the chaotic corporate governance structure is the source of the problems of internal control.Around the topic" the influence path of corporate governance structure on the internal control" the paper firstly summarizes and combs the existing literatures and sets out the theoretical basis of the two.Then,it analyzes the influence path of the corporate governance structure on the internal control.Next,setting Tianmu Pharmaceutical Company as an analysis case,the paper analyzes the impact of the chaotic governance structure on its internal control and the influence path profoundly.Finally,it gives some specific suggestions on the internal control of Tianmu Pharmaceutical Company from the perspective of corporate governance structure.Through the theoretical analysis of corporate governance structure and internal control and the case analysis of Tianmu Pharmaceutical Company,this paper draws the following conclusions:Ineffective design or implementation of internal control will affect the realization of listed companies' operations,reports,compliance and strategic objectives;the governance structure can influence the elements of internal control and then the internal control from the shareholders,the board of directors,the board of supervisors and the management level one by one;it's the first thing to improve the corporate governance structure when we have the construction of internal control.At the end of this paper,it puts forward several constructive suggestions on the internal control of general listed companies from the perspective of corporate governance.In the process of research,the innovation lies in the fact that,on the one hand,the internal control problems of the specific listed company is used as the analysis case,which can strengthen the relevance of research contents and the practicality of conclusions.On the other hand,analyzing the reasons of the internal control problems of listed companies from the perspective of corporate governance and exploring the influence path of corporate governance structure on the internal control is an innovative research perspective which can enrich the research contents.