Research On Internal Control Defects Of New COSO-ERM Guidelines

With the advancement of the world economic integration process,the current world pattern has become more volatile,social relations have become increasingly complex,and the risks faced by business operations have become unpredictable.At the same time,corporate shareholders,creditors and other stakeholders have begun to pay attention.The performance of the company has improved.After years of deliberation in 201 7,the COSO Committee finally released a new version of the comprehensive risk management framework("COSO-ERM 2017"),which is the first revision of the ERM framework after more than ten years after the release of the ERM framework in 2004.It mainly focuses on how to consider the problem of maximizing the value of the enterprise from the perspective of integrating risk management,and at the same time ensuring the realization of the strategic goals of the enterprise.In this process,enterprise internal control is the most powerful strategic weapon in the enterprise management process,and should be the first to improve the framework to adapt to the new strategic goals of the enterprise.In the same period of the release of COSO-ERM(2017),Zhangzidao Group Co.,Ltd.("Zhangzidao")issued a notice stating that the stock of scallops in the company was abnormal,and it is expected that the inventory depreciation will lead to huge losses.As the largest marine aquaculture enterprise in China,following the sensation of the scallops in the country in 2014,its internal control system has been relatively perfect,but there has been another huge loss event caused by abnormal inventory impairment.The media and some scholars believe that this incident means that the internal control of Zhangzidao is still defective under the existing system,and the established internal control system has not been effectively implemented.At the same time,this paper finds that the academic research on the Zhangzidao incident mainly focuses on the inventory anomaly events in 2014,and most of them use the risk management integration framework to analyze the more obvious internal control problems,while internal control and corporate strategy and performance aspects.The contact has not received the corresponding attention.The research ideas of this paper are as follows:Firstly,the article discusses the optimization process of internal control framework and its relationship with enterprise risk management ERM in clironological order;at the same time,it defines the related core concepts and the main theoretical framework and related to enterprise risk management.The theory is elaborated,and the advantages of COSO-ERM(2017)and the reasons for its analysis and research are emphasized,which lays the framework foundation for the later case analysis theory.Subsequently,this paper uses case studies to review the major internal control problems of the huge loss event in Zhangzidao in 2018.Firstly,according to the five elements of COSO-ERM(2017),the status quo of internal control construction of Zhangzidao Group is introduced.Secondly,through analyzing the deep reasons of the abnormal damage event of Zhangzidao,the risk management problems of intermal control exposed behind it are evaluated and analyzed.Finally,this paper improves the internal control system from the perspective of the new COSO-ERM and the actual problems of the Zhangzidao Group,and proposes the feasibility from the five perspectives of governance and culture,strategy and goal formulation,performance,evaluation and revision,and information,communication and reporting.The countermeasures and suggestions,on the one hand,improve the internal control system for the Zhangzidao Group,and provide constructive suggestions for the internal control practitioners of the same industry or with the same internal control defects.The research results of this paper start from the new COSO-ERM framework.Through the analysis of the internal control system of Zhangzidao Group,the countermeasures and suggestions for optimizing its internal control system are obtained,namely:strengthening corporate governance and cultural construction,and rationally setting corporate strategy and objectives.Strengthen risk identification and response,establish internal control mechanisms for regular assessment and revision,and timely communicate and report corporate information in accordance with relevant policies.At the same time,in order to achieve the purpose of providing enterprises for reference.