Research On The Method Of Evaluating The Internal Control Of The NEED's Companies By A Case Study Of Yin Du Media

Chinese capital market has developed rapidly,and the capital market structure has been further improved.The NEEQ is an essential exploration for completing Chinese capital market.Also,the NEEQ provides a way to absorb the capital for smaller enterprises.Meanwhile,it belongs to the important mission of the 13~THH Five-year plan.As of 31st December 2017,the NEEQ contains 11630 companies,with a total equity up to 6,756,730 million.Within one year,the NEEQ nearly doubled the number of listed companies from 5,129 to 11,630.Today,the amount of the NEEQ is three times as much as A Board.The NEEQ becomes the main part of Chinese capital market,also builds up an essential foundation for supporting Chinese small enterprise searching a better finance platform.However,there are fewer requirements for the company registering in this market.The requirements for the corporate governance structure,capital scale and profitability are lower than Main Board,the Small and Medium-sized enterprises'board(SMEs board).With the rapid development,many economic problems have been showed up,such as information disclosure of company by shareholders,and illegal profit manipulation,etc.Therefore,the restraint and management of this newest market with fullness of Chinese characteristics becomes the major concern of many Chinese government sectors,for example,China Securities Regulatory Commission(CSRC)and China finance ministry.At the same time,it becomes a developing requirement for the NEEQ's companies.To improve the internal control system is the most effective and most popular way to solve this problem.America is the first and most advanced country to look for internal controls.In 1992,the COSO committee set up a frame system for internal control which contains five elements.According to this frame,the Chinese five ministries combined Chinese economic market characteristic,and published<enterprise internal control basic norms inform>(C-SOX)and<Guidance on enterprise internal controls>.In 2017,China has set up an internal control system for small and medium-size enterprises.Building up a suitable method to evaluate the enterprise internal controls effectiveness is the primary task to improve Chinese internal control system and standardize the NEEQ.At present,there are two ways to research,one of them is to evaluate the defects of internal control,and list the effectiveness affecting factors and evaluate them individually.The other way is to work through Fuzzy Analysis Method to evaluate the effectiveness,which is based on the five elements of internal control,design weight and grading standard.The former one is applicable for the external auditors to evaluate the report of internal control.The second is quantitative evaluation method especially for the company to evaluate its internal control.Regarding to the five elements of internal control and Chinese laws and regulations,the paper will propose an evaluation model which unite the characteristics of the NEEQ,and use Analytic Hierarchy Process to confirm weight and evaluation standards for the NEEQ.The paper will also build up an evaluation index system which contains two levels of twenty-four indicators.In the end,the author will use Fuzzy Evaluation Method to get the comprehensive assessment.One typical company was chosen-Yin Du Media-from the NEEQ to use this model to evaluate its effectiveness of internal controls.As a result of the case study,it will be proved that the model can perform excellently in this area.And through the model,the NEEQ's internal controls problems can be found easily.Many suggestions can be given according to the current problems.