Case Study Of Qinhuangdao Yaohua Glass Limited By Share Ltd's Decay From The Perspective Of Internal Control

In the late twentieth Century,the theory of internal control was put forward.With the continuous changes of market economy,the meaning and significance of internal control are becoming more and more abundant.Many companies have insufficient understanding of internal control,which lead to internal control defects,financial scandals or business bankruptcy events.In Singapore,air oil fraud and the shock of Enron events in the industry are closely related to internal control failure.The construction of internal control in China started relatively late,but it developed rapidly.After a series of scandals caused by internal control defects,such as the Swan son Island fraud and Zheng Baiwen's fraud,the quality of internal control became the focus of the market and investors,which caused the academic circle.Discussion on the criteria for determining the defects and validity of internal control.The market practice has proved that if the business management is in trouble,there must be a problem of internal control defects,especially when a company is turned from prosperity to extinction,internal control defects are often the root cause.Using the method of case analysis,this paper takes the Qinhuangdao Yaohua Glass Limited by Share Ltd as the research object.From the perspective of internal control,this paper analyzes the whole event of the enterprise from prosperity to decline.First,the theoretical basis and development process of internal control are introduced.According to the classification of the five elements of internal control,the main points are set up from five dimensions.From the perspective of control elements,the prominent problems in the internal control system of Qinhuangdao Yaohua Glass Limited by Share Ltd are analyzed in detail.Secondly,combined with the company's development life cycle,the internal control situation and causes of each stage are analyzed.Finally,according to the results of the case analysis,the paper puts forward suggestions for improving the internal control system of listed companies from two aspects of the government and enterprises.Through the study of this case,it is found that the more historically long state owned enterprises are inclined to empiricism,the rule of man is greater than the rule of law,and the internal control mechanism is empty.The case of Yaohua Glass is an extremely prominent example,and there is a big problem in the design and implementation of internal control;and the other government The Department did not play a positive role in the decline of Yaohua Glass,and the government's excessive intervention on state-owned enterprises was prominent.It is hoped that through the analysis and research of this case,it will provide reference for the establishment of effective internal control system of listed companies of state-owned enterprises in China.