Fraud In Listed Pharmaceutical Companies From The Perspective Of Internal Control

In recent years,In recent years,China’s economy has developed rapidly and has become the second largest economy in the world.People’s living standards have improved significantly,and higher requirements have been placed on medical care.In order to speed up medical reform,China has introduced policies such as volume purchase,controlling the proportion of drugs,eliminating drug markups,and controlling medical insurance costs.These policies have had a great impact on prescription drugs.In addition,under the influence of national industrial policies and macroeconomics,government departments have introduced hospital fee control and a "two-vote system" policy,which directly affects the domestic pharmaceutical circulation sector.The pharmaceutical industry will face a larger problem in the future.The operating risks of China’s pharmaceutical industry will certainly enter the "cold winter." High risk and high investment are the outstanding characteristics of the pharmaceutical industry.A few pharmaceutical listed companies have taken many improper measures to beautify financial statements and even committed financial fraud.Although it is conducive to maximizing their own interests,it has increased business risks.In particular,in the past two years,the buzzing long-life biological "poison vaccine" incident in 2018,Kangmei Pharmaceutical’s financial fraud amount refreshed the height of the securities market,and Furen Pharmaceutical’s 1.6 billion cash fraud case.Various listed pharmaceutical companies have repeatedly banned fraud.This article analyzes the financial fraud of listed pharmaceutical companies in China from five perspectives: control environment,risk assessment,control activities,internal supervision,and information communication.At the same time,it summarizes and analyzes the characteristics of financial fraud in the pharmaceutical industry in China.Potential fraud in the financial statements is concentrated on high-risk items such as monetary assets,costs,revenues,and inventory.Commonly used methods include: false increase in income,false increase in profits,counterfeiting of monetary funds,biological asset measurement,and related parties.Trading has the characteristics of concealment and complexity.Finally,taking the Kangmei Pharmaceutical case as an example,it analyzed the counterfeiting methods and the causes,and proposed corresponding measures to improve the governance structure of pharmaceutical companies.It is necessary to payattention to optimizing the shareholding structure to prevent “one big company” when improving the management level.Optimize the company’s management structure,introduce professional managers,adopt a "dualistic" leadership structure,restrict each other,strengthen the supervision and inspection of third-party agencies,make full use of third-party forces,and improve the company’s internal control system.The state needs to increase financial fraud,etc.Penalties for illegal acts,and promulgation of corresponding laws,so that enterprises can not cheat,do not want to cheat.It not only improves the internal management and control level of listed pharmaceutical companies,but also maintains the normal order of the capital market.The government strengthens the supervision of listed pharmaceutical companies through macro-control measures to create a good market environment and promote the healthy and healthy development of China’s economy.