Research On Internal Control Weaknesses Of Listed Companies

Effective internal control can reasonably ensure the legality and compliance of business management,asset security,financial reporting and related information is true and complete,improve operational efficiency and effectiveness,and promote enterprises to achieve development strategies.However,the existence of internal control defects will affect the implementation of the above internal control objectives.With the implementation of the internal control audit system in recent years,the number of internal control defects disclosed by listed companies in China has also increased sharply in 2017,and the types of internal control defects have also been concentrated.Through the research on the internal control defects of listed companies,it is helpful to understand the problems existing in the internal control of listed companies in China,to explore the causes of internal control defects,and to provide useful reference for enterprises to improve internal control construction and strengthen supervision of supervision institutions.Based on this,this paper starts with the internal control defects disclosed in the internal control audit report,and selects the olefin carbon new material company with a large number of internal control defects and typical representatives.This paper is divided into five parts.The first part of the article first puts forward the background and significance of the topic.Based on the analysis of internal control defects and internal and external research results related to internal control audit,the basic framework of this paper is established.The second part of the article describes the theory,institutional background and implementation status of internal control and internal control audit.The third part is mainly the case analysis of the new carbon-carbon company,which analyzes the types of internal control defects involved in the internal control audit report by collecting case companies,and from financial reports,related transactions and investment management.In the aspect of business activities,the specific situation of the internal control defects of the case company was analyzed.The fourth part is to further explore the reasons for the formation of major defects in the internal control of the case company,from the aspects of internal environment,control activities and internal supervision.At the end of the paper,the above problems are summarized.It is concluded that the internal control defects are mainly caused by the weak internal environment,the control activities affected by human factors and the conclusions of internal supervision failure.Then,the corresponding suggestions are put forward,and the shortcomings of the research are finally explained.This paper adopts the case form,based on the major defects of internal control disclosed in the internal control audit report of listed companies,and analyzes the causes of internal control defects from the level of internal control factors.At the same time,the case company has issued a negative internal control audit report for four consecutive years from 2014 to 2017.The number of major defects in internal control disclosed is large,and the characteristics of the internal control defects of listed companies in China are typical.Through the research and analysis of the case of olefin new carbon company,it aims to remind listed companies to improve the governance structure,effectively restrain the power of key management personnel,avoid the manipulation of control activities,and strengthen the internal supervision accountability mechanism.Effective implementation.In addition,China's internal control supervision system needs to be strengthened.This paper also puts forward some policy recommendations to provide reference and reference for the implementation of the regulatory agencies.