An Analysis Of The Internal Control Of Listed Companies And Financial Fraud

Since the Enron incident,all countries have issued corresponding documents on internal controls to prevent similar incidents from happening in order to better manage the company.After China introduced the internal control documents of the enterprises,the quantity and quality of disclosure of internal control information of listed companies have been improved compared with the past.The overall disclosure is good,but it cannot be denied that the events of financial fraud occur from time to time.According to investigations and studies,enterprises that often have financial frauds are not effective in their internal control.Because loopholes in corporate internal controls may create incentives,opportunities,and excuses for financial fraud,it is of great significance to study the internal control of related financial fraud companies..By analyzing the existing relationship between financial fraud and corporate internal control,this will help us rely on standardized corporate internal control to effectively inhibit the implementation of financial fraud.At the same time,the study of the relationship between internal control and financial fraud in China's listed companies has important theoretical and research significance for advancing the internal management of Chinese listed companies and the authenticity of financial information.This article takes internal control and financial fraud as research objects,and analyzes it through literature analysis and case analysis.A number of related documents have been sorted out,and with reference to the White Paper on the Internal Control of Listed Companies in China from 2011 to 2016,the internal control of listed companies in China has been sorted out from 2011 to 2016.At the same time,this article uses Boyuan Investment Company as an example.Through analysis of its internal control,it is found that the financial fraud of Boyuan Company is closely related to its internal control.Unreasonable corporate governance structure and ignorance of internal corporate governance are enterprises.The occurrence of financial fraud provided an opportunity.The occurrence of financial fraud has gradually destroyed the further development of the company and led the company to bankruptcy.Finally,from this case,we put forward suggestions for listed companies,regulatory authorities,and the overall external environment,with a view to inspire China's internal control issues.