Research On The Influence Of Internal Control Defect Rectification On Enterprise Financial Performance

With some famous international companies failing due to financial fraud or management failure,internal control has been paid more and more attention by the company.Internal control is vital to the development of an enterprise.Several experience and lessons show that if the internal control system is not perfect and the internal control cannot be effectively implemented,a little problem will bring chain reaction and bring great harm to the enterprise.So,Improving and strengthening internal control is especially critical for enterprises.Financial performance is an important business objective of the company,urging the company to develop continuously.In recent years,more and more scholars have explored the relationship between internal control and corporate financial performance.Through research,they have proved that internal control defects can affect corporate financial performance.However,few scholars focus on the influence of the improvement of internal control defects on the financial performance of enterprises.Based on the literature and theories on the influence of internal control defects and internal control defects on corporate financial performance,I do a case study on TianMu pharmaceutical enterprise.Then analyze the change of financial performance of TianMu pharmaceutical company before and after the improvement of internal control defects.Found the influence of defect disclosure on the company's financial performance.Then draw conclusions and make Suggestions for improving internal control.In this way,I hope the company attaches great importance to the internal control through analysis and research.Also can make the company with internal control defects correctly recognize the defects of the two-sided,active improvement of the existing defects,perfect the internal control,improve the quality of internal control,so as to promote enterprise's financial performance.