Analysis Of Internal Control Problems And Countermeasures Of WANNIANQING Co.,LTD

With degree deepening of economic globalization,each country,whether developed or developing countries have rapid economic development,national large-scale enterprises,listed companies are undergoing profound changes,the level of economic rapid increase is accompanied by a variety of astonishment the financial scandals of the world,are reflects the different levels of the listed company internal control problems.After 1990,studies on internal control in various countries emerge one after another,and the most representative report on internal control in this period is the "COSO report".This report makes a new summary and analysis of internal control,and studies five important components that constitute the internal control framework.The enterprise risk management--integration framework initiated by the national committee on false financial reporting proposes new contents of exploring risk management and control from various aspects in terms of internal control.Another act on internal control is the public company accounting reform and investor protection act of 2002,known as the SOX act.The bill has a new argument-financial reporting internal control,it points out that the senior managers of listed companies must be under the premise that guarantee the effectiveness of internal control,audit committee within the stipulated time to ensure reliability of the control program,and complete the company financial statements,and released at the same time to the enterprise the internal control evaluation and analysis of the status quo of the information.Due to the influence of the Asian financial crisis,people from all walks of life as well as the state financial department pay more and more attention to the construction of internal control of Chinese enterprises.According to the development and operation of Chinese enterprises,the basic norms of enterprise internal control issued in 2008 require enterprises to construct the basic framework of internal control system.This specification resummarizes the internal control in a more comprehensive and rigorous way,and gives a more accurate and detailed description of its implementation criteria and goals to be achieved,which has certain practical and reference functions.In recent years,financial scandals and financial loopholes have emerged one after another concerning listed companies in China.Every year,many large state-owned enterprises and private enterprises are issued audit reports with negative opinions oninternal control by accounting firms.Most enterprises since the reform and opening-up rapid economic development,enterprise development has been emphasis on economic profits,know very little about the concept of enterprise internal control,more do not know how to carry out,also did not set up the consciousness of the internal control system,some even think that the senior management implement the system of internal control will increase the operating costs of enterprises,labor costs,reduce the profit of enterprise management,is not conducive to the long-term development of the enterprise.A co.,LTD.,A group company listed on the Shenzhen stock exchange,once held A leading position in the cement industry in Jiangxi province.In the 1990 s,A company had A high level of production profits,and its stock price rose steadily.The internal control system of the company looks very complete on the surface,and there is no shortage of all kinds of supervision and execution departments.However,in the actual implementation process,the company has many problems in the implementation of internal control system,resulting in the overall failure of the internal control system.In2005,A major case of corporate senior management collective corruption took place in company A,involving 65 people,with A value of more than 1 billion yuan.In 2016,the director of the company’s finance department embezzled 176 million yuan of the company’s acceptance bill without authorization,and provided false certificates to help the third party borrow money from the bank under the pledge of accounts receivable,resulting in huge losses of the company and the bank.Because of this case,Daxin accounting firm issued the internal control audit report of negative opinions on company A in 2016 in 2017.The above series of cases have exposed to A large extent the internal control problems of company A,such as poor internal control environment,lack of risk management mechanism,unreasonable post setting and lack of internal supervision.In this paper,A company limited by shares,for example,through the analysis on the basis of the theory of internal control,reveal company internal control present situation,found that the internal control problems,and from the company’s internal environment,the risk awareness,post Settings,internal supervision and so on analysis of the causes of internal control defects,finally put forward the perfect proposal.This paper is divided into five parts.The first part is the introduction,which mainly introduces the research environment background,research value and significance,related literature and research methods of enterprise internal control.The second part is the overview of enterprise internal control theory,including the content of enterpriseinternal control and several theories of internal control;The third part reveals the current level of the company’s internal control from the aspects of the company’s operation mode and governance structure.The fourth part analyzes why there are a series of problems in the company’s internal control and the corresponding reasons for the problems.The fifth part puts forward practical Suggestions according to the problems existing in the company’s current internal control.