Research On Internal Control Of G Group

Since G Group's listing,its performance has continued to decline.G Group's management is aware that the current situation will be difficult to reverse under the combined effect of the sluggish external industry and unscientific internal control of the enterprise.As a result,Group G has started a strategic transformation in terms of industrial chain,business focus,overseas market and internal control since 2010,with the intention of reversing the situation.However,judging from its 2019 annual report,such efforts have not had the expected effect.The author thinks that the main reason why G Group's strategic transformation has not achieved the expected results is that G Group has paid more attention to the industrial chain,enterprise structure and less attention to internal control.G Group has neglected its own chain enterprise nature,which leads to the lack of subsidiary control and the contradiction of internal minority shareholders.Before these problems were solved,Group G hastily set foot on the upstream industrial chain and the new market,causing its own accumulated problems to be finally detonated.Based on the research of "Internal Control-Integration Framework(COSO-IC)",this paper identifies the internal control defects of G Group from five aspects of risk assessment,control activities,control environment,information and communication,and supervision through the five elements of internal control of COSO framework,combined with the actual situation of G Group and the business situation and financial data of five subsidiaries in Z Province involved in the author's work in G Group.After that,by analyzing the impact degree of the identified defects on the realization of G Group's strategic objectives,the defects are sorted,and the whole strength and sequence are confirmed according to their impact degree,with emphasis on the problems of lack of subsidiary control and corruption of minority shareholders.The author hopes to improve the scientific internal control mechanism to help G Group out of the dilemma.In this article,the author analyzed the problems existing in G Group's internal control one by one,and further explored the root causes of the problems.Combined with the enterprise's operating characteristics,the author searched for the rules of internal control in G Group.On this basis,the author put forward targeted suggestions for optimizing internal control,including,first,strengthening the internal environment rectification,appointing competent management,transferring power,adjusting the basic organization structure,scientific rotation promotion system,and strengthening enterprise culture.Second,standardize control activities,improve corporate governance,restrict minority shareholders,reduce the power of subsidiaries,break the abnormal capital activities,centralize purchasing and selling businesses,strengthen asset management,and build a corruption prevention system for subsidiaries.Third,improve control methods,establish preventive and corrective control and reshape process control.Fourth,to ensure smooth communication and timely access to information,that is,to use digital and information management methods to reduce information asymmetry;Fifth,reshape the supervision mechanism,increase the independence of auditing,and truly play the role of auditing and other supervisory departments in fighting corruption.The Comprehensive Framework for Internal Control(COSO-IC)has been promulgated for nearly 30 years,but compared with the current internal control situation of some listed companies in China,there are still many chaos.On the basis of on-the-spot investigation and analysis of the problems existing in G Group's internal control,this paper attempts to reveal the internal causes of the chaotic management and poor performance of some group enterprises in China,and to find ways and means to solve the problems,so as to achieve the effect of seeing the whole world and improve the management level of the enterprises.