Research On The Internal Control Defects Of Geeya Technology Company Based On Financial Restatement

The internal control of the enterprise is by the management layer and the management layer jointly formulate the relevant policies and supervise the implementation,its purpose is to prevent risks,prevent fraud,promote the realization of strategic objectives.The quality of internal control has a significant impact on the quality of accounting information,and the financial restatement is the behavior of the enterprise to correct and remedy the accounting errors in the previous period and restate the financial report disclosed in the previous period,which indicates that the quality of enterprise accounting information is not high.Due to the relatively late establishment of the financial restatement system in China,most of the relevant researches focus on the motivation and influence of financial restatement,but fail to pay attention to the important role of financial restatement in identifying the internal control defects of enterprises.Through the method of combining literature analysis and case study,this paper takes the eight financial restatements of Geey,a listed company on gem,from 2011 to 2017 as the case,and focuses on the defects in the five elements of internal control reflected in the financial restatements of Geey.The study found that the weak control environment construction,the formalized risk assessment procedures,the lack of implementation of control activities,the lack of smooth information and communication,and the disordered internal supervision system of Geey not only hindered the development of Geey,but also resulted in the loss of the interests of the majority of investors.This paper takes the financial restatement as the lead and focuses on analyzing the internal control defects reflected behind it.It can only broaden the research perspective of the relationship between the two,and explore new ideas for listed companies to strengthen internal control construction,improve audit quality and investors to make better use of financial restatement information.