Research On Optimization Of Internal Control Activities Of Chengdu Huaze Cobalt Nickel Company

Internal control plays an important role in the development of enterprises.If the internal control environment is poor and the system is not perfect,the enterprise will have problems,which will affect the development of the enterprise.Thus,the research on internal control has become an essential part of the advanced progress of the enterprise.With the continuous growth of economy,the research on the development of internal control of enterprises in China has been gradually improved.Recently,although some relevant laws and regulations currently has been relatively mature,there are still a larger number of major financial law violations and financial fraud cases in China,such as the financial fraud cases of listed companies such as "Xintai Electric","Shenglaida","Wanfushengke","Guoyao Holding Company","Kunming Machine Tool" and "Yunnan Green Land".These cases not only damage the reputation of these listed companies,but also cause adverse social impacts.The main cause of this phenomenon lies in certain defects in the internal control of listed companies.Therefore,an in-depth study of internal control is urgently needed.Enterprises should not be satisfied with the implementation of relevant systems of internal control,but should pay more attention to the problems existing in the implementation of internal control of enterprises and the causes of these internal control problems.Chengdu Hua Ze Cobalt Nickel Material Co.,Ltd.,as an established listed company,has experienced many years of development and ibations rich operating experience,but it finally broke out financial fraud and was suspended from listing in 2019.In the course of the company's operation,there are more or less problems in all aspects of internal control,of which the more prominent is the problem of internal control activities.This paper studies the internal control activities of Hua Ze Cobalt and Nickel Co.,Ltd.by literatureanalysis and case study.After collecting and summarizing the theoretical basis,combining with the financial report,internal control audit report and internal control self-evaluation report of Hua Ze Cobalt and Nickel Co.,Ltd.from 2014 to 2018,the research and analysis are carried out to understand the current situation of the company's internal control activities.It could illustrate that these problems belong to several elements of internal control activities,such as authorization approval,accounting system control,property protection control and operation analysis control.The reason is that the authorization approval control system is not perfect,the property protection control system has loopholes,the accounting system control is not in place,and the operation analysis control cannot be guaranteed.Finally,taking Hua Ze Company as an example,this paper puts forward feasible suggestions on the optimization of internal control activities of listed companies: in the process of internal control design and implementation,enterprises should establish and perfect the authorization control mechanism by improving the governance structure,clarifying the authority and management system of various departments of the company,establishing an evaluation system for authorization approval control activities,and unblocking information feedback channels;Strengthening the management of accounting system control procedures by improving the quality of accounting personnel and establishing and perfecting the supervision of internal accounting system;Strengthening the management of current assets of monetary funds,perfecting the control system of inventory and fixed assets,and perfecting the management system of accounts receivable to improve the property protection control system;Strengthen system control and solve the problem of principal-agent to reduce the turnover rate of senior executives and implement the operation analysis and control system.