Case Study On Internal Control Defects Of *ST New Carbon Material Company

In recent years,in the Chinese capital market,the listed company internal control defects incidents occurred,such as xinhua pharmaceutical,tianjin card,great energy,etc.,these internal control defects events show that the internal control of listed companies management has many problems.According to the research on the internal control,the internal control system can achieve the goal of improving the operation efficiency of the enterprise,ensuring the quality of financial information and operating the legal compliance.In 2014-2016,* ST ene carbon new material company for three years in the internal control auditing opinion report types for the negative opinion,in the investment decision-making,related party transactions and the accounting business process,as well as internal control major defects.Therefore,this paper selects *ST carbon new material company as the case study object,and conducts specific research on its internal control defects based on the Angle of internal control five elements.This paper mainly adopts literature research and case analysis,in the research field of internal control defects,on the basis of related literature,the * ST ene carbon new material company internal control defects case analysis,and combined with the company internal control audit report from 2014 to 2016 and the contents of the internal control self assessment report,puts forward proposals to optimize the internal control.This paper firstly introduces the operation status and audit report of *ST carbon new material company,and describes the major defects of the internal control in 2014-2016.Then,from the perspective of internal control environment,risk assessment,control activities,information and communication and supervision,the reasons for the major defects in internal control are analyzed.Finally,according to the causes of the major defects in the internal control of *ST carbon new material company,this paper puts forward the targeted optimization Suggestions.The internal control system,as a "firewall" for enterprise risks,can resist risks and improve the operating efficiency of enterprises.Through the research of this paper,it can be concluded that the perfect internal control system can improve the operationof the company.Listed companies need to establish and implement internal control system to improve corporate governance.At the same time,industrial transformation enterprises need to carry out risk assessment work.The case study on the internal control defects of *ST carbon new material company will help enrich the research results in the field of internal control defects and promote the sustainable and healthy development of China’s capital market.