Study On Internal Control Defects Of Financial Reports Of Listed Companies

Since the 21 st century,financial fraud events and various means of financial fraud have been frequently exposed,which also expose many defects in the internal control of financial reporting of listed companies.Not only Enron and Worldcom events,but also similar events have occurred in Chinese companies,which have weakened the reliability of financial reports of listed companies,reduced the credibility of companies,and reflected that there are many defects in the internal control of financial reports of listed companies in China.Companies began to focus on the internal control of financial reporting,and the United States issued the Sarbanes-Oxley Act,requiring listed companies to carry out internal control self-evaluation,to provide a reasonable guarantee for the reliability of financial reporting.The Basic Norms of Enterprise Internal System formulated and released in China in 2008 and the Supporting Guidelines of Enterprise Internal Control issued in 2010 are the main marks of the basic establishment of enterprise internal control standard system in China,which have important and far-reaching significance and lay a solid foundation for the internal control construction of listed companies.Thesis mainly to the above content as the background,the study of financial report of listed company internal control defects,and MS culture company as paper case study object,analyzes the culture of the company's financial reporting internal control defects,specific preventive measures,the reliability of financial reporting to provide reasonable assurance for the company,and strengthen the consciousness of management control,increase investment,enhance the competitiveness of the company.MS culture co.,LTD.is a business animation derivatives of listed companies,MS culture company hired Tian Jian certified public accountants 2018 annual financial report for the company internal control effectiveness audit,and found in the process of certified public accountants to audit financial reports of major defects of internal control and the general defects issued by the negative opinions of internal control audit report.Based on the above audit report and the annual internal control self-evaluation report of MS Culture Co.,LTD.,this paper comprehensively applies literature research method and case analysis method.From the internal control,financial report internal control defects reference domestic and foreign research literature;Combining internal control theory and cybernetics;According to the identification standard of financial report internal control defects,major defects and general defects of financial report internal control of MS Culture Company are divided,and the specific causes of defects are discussed and analyzed,and prevention suggestions are given.Finally,through the case analysis of MS Culture Company,preventive measures are proposed for the internal control defects of financial reports of listed companies,so as to improve the effectiveness of internal control and the authenticity and reliability of financial reports,which is conducive to the correct decision-making of the company.