Research On The Xd Traditional Chinese Medicine Company's Evaluation Of Internal Control

The world today is in the context of economic globalization,and the fierce competition between companies is increasingly serious.In the meantime,oreign and domestic companies have scandals of financial fraud.On the one hand,for the sake of gaining a competitive advantage,on the other hand,due to the requirement of laws and regulations,enterprises are paying more attention to internal control.In the modern enterprise internal control activities,risk management has gradually become the key to determining the success of the enterprise,Therefore,the focus of internal control evaluation correspondingly gradually shifted to the risk-oriented development direction.As the most authoritative institution for internal control research,the COSO Committee of the United States released an official ERM Framework(ERM Framework)to the outside world in 2017.This ERM framework is the first significant improvement to the Corporate Risk Management-Integration Framework submitted by the 2004 COSO committee.It also profoundly affected the company's internal control and risk management.This article draws on the latest 2017 version of the ERM framework for XD Chinese medicine company internal control evaluation application.First of all,this article discusses the latest research results and theoretical basis of internal control evaluation and ERM framework.Then,on the premise of explaining the feasibility and necessity of applying ERM framework to XD Chinese medicine company,the evaluation system of XD Chinese medicine company was constructed based on the grounded theory,ERM framework and predecessors' research.Finally,based on the results of internal control evaluation of XD Chinese medicine company by using AHP and fuzzy evaluation,the results are briefly analyzed and the countermeasures are put forward one by one.The study of this article shows:First,The evaluation system of internal control based on ERM framework evaluated XD TCM Company with a score of 79.5.XD's internal control of the TCM company is in a “good” state and still needs improvement.Second,Based on the evaluation results of XD TCM Corporation and the author's field survey results,XD TCM Company has flaws in the five elements of the ERM framework.Among them,the governance and culture elements are the best,and the worst is the review and revision factors.Third,XD TCM Company shall,based on the evaluation results,improve the existing defects in internal control to improve the level of internal control and enhance the ability to resist risksWith regard to the research on the evaluation of internal control,our country's organizational structure and experts and scholars are relatively mature.However,the research on internal control evaluation from the perspective of ERM framework is relatively rare.Therefore,the innovation of this paper is to study the internal control evaluation based on ERM framework.At the same time,the conclusion of this paper has a positive effect on improving the internal control of XD TCM companies,and also provides reference for other companies in the industry.