A Case Study Of ShangHaiPuTian Financial Restatement From The Perspective Of Internal Control

As an important information carrier,financial report can directly reflect the financial status and business results of the company.So for external information users,the importance of financial reporting is obvious,it is one of the most commonly used reference tools for information users to make decisions.The financial restatement of an enterprise indicates that the information provided by the financial report of the enterprise has a problem in quality,which greatly reduces the reliability of the financial report of the enterprise.In the research on the financial restatement of listed companies in China's capital market in recent years,it is found that the reason behind this is not only the company's own earnings manipulation,but the flaws in the internal control of most listed companies.Due to the increasing frequency of financial restatement incidents,many domestic scholars have begun to pay attention to this issue,but there are not many case studies on financial restatement from the perspective of internal control.Therefore,this paper has a great case study on financial restatement.significance.This paper uses the combination of theoretical analysis and case analysis to firstly comb the relevant literature on the causes and effects of financial restatement and the relationship between internal control and financial restatement,and summarizes the existing research results.Then,starting from the concept of financial restatement and internal control,the relevant theoretical basis and the analysis of the relationship between the two,theoretically paving the way for later discussion and case analysis.Thirdly,a brief introduction to Shanghai Putian's company profile and governance structure,and a description of Shanghai Putian's2018 financial restatement,found that it has a significant impact on the financial statements and the company itself.In-depth analysis of the reasons for financial restatement,found that the internal control of defects is the most important factor leading to Shanghai Putian financial restatement.Therefore,from the perspective of internal control and internal control defects,this paper analyzes the specific impact of internal control on financial restatement and puts forward internal control suggestions to prevent Shanghai Putian financial restatement.Finally,the conclusions and enlightenments of this paper are drawn.The study found that the financial restatement of listed companies can reflect the flaws ininternal control,which can easily lead to financial restatement and may even have a bad impact.The lack of normal communication and supervision mechanisms within the company will increase the risk of financial fraud.Failure to assess and identify these risks in a timely manner will also lay the groundwork for financial restatement.Based on these conclusions,the corresponding enlightenment is drawn: listed companies need to improve the operating environment of internal control,and fundamentally curb the occurrence of financial restatement.At the same time,we must pay attention to the financial restatement that has taken place,and timely develop remedial measures to minimize losses.By improving internal information communication mechanisms and establishing a risk control system,financial restatements can be effectively reduced,and shareholders,investors,and various stakeholders can be more protected.Because the ultimate goal of preventing financial restatements is to hope that the quality of information provided by Chinese listed companies will improve as a whole.