Research On Internal Control Defects And Information Disclosure Of Listed Companies In China

In 2012,the "Basic Standard for Enterprise Internal Control" and its supporting guidelines were formally implemented in China.On January 1st,all enterprises listed on our main board were asked to publish the "Enterprise Internal Control Evaluation Report",and should hire an accounting firm to audit their internal controls.In fact,regardless of the company's self-evaluation report,or the firm's external audit report,the focus is whether there is a serious defect in internal control and whether it can be fully and properly disclosed.At the same time,the disclosure of the internal control deficiencies of the listed companies is often restricted by the corporate governance and external regulatory environment,and will affect the investors' judgment on the value of the company and the stock price of the company.Based on this,the disclosure of internal control deficiencies has its own unique research significance.This paper chooses Da You Energy Co.,Ltd as the object of the case study fully describes and analyzes the defects of its internal control and the related information disclosure.The case revealed that,during the 2013-2016 period,the company involved in four types of internal control of major deficiencies,which were the mining rights,sales patterns,security incidents and duty encroachment,respectively.In addition,the enterprise has a lot of illegal information disclosure of internal control deficiencies and has been punished by the SFC due to delayed disclosure of related party transactions.Furthermore,this paper uses the event research method to research the market reaction of the stock of Da You Energy Co.,Ltd,caused by the first exposure of Juhugeng mining rights events on September 10 th,2013,by China Securities Journal.Through the research of this paper,the following conclusions are drawn: Internal control and information disclosure of Da You Energy Co.,Ltd are obviously inadequate;corporate governance cannot effectively play its important role in internal control;internal control of defect information will affect Da You Energy Co.,Ltd 's performance in the stock market;External supervision must be strengthened in Da You Energy Co.,Ltd and such listed companies.