The Influence Of Internal Control Defects On The Quality Of Accounting Information

The accounting information quality is of great significance to the healthy and stable development of China's market economy.Whether it is the creditors of enterprises,market investors,or government regulators,they should understand and grasp the business situation and financial situation of enterprises through accounting information,so as to make various relevant decisions.At the present stage,the quality of accounting information in China is dissatisfactory.Many listed companies have serious distortion of accounting information,the root of which is that the defects of internal control of these companies,resulting in fraud.In order to eliminate the financial fraud,improve the quality of accounting information,maintain the sustainability and growth of the capital market,it is imperative to optimize and upgrade the internal control of enterprises.By using the methods of literature research,normative analysis and case analysis,the paper analyzes the distortion of accounting information in Fushun Special Steel Co.,Ltd,which inflated inventory and fixed assets by forging accounting vouchers,tampering with the data of accounting information system and and other financial frauds,resulting in its profit watering.Based on the perspective of five elements of internal control,the paper makes an indepth analysis of the causes of accounting information in Fushun Special Steel Co.,Ltd.,and finds that there are many deficiencies in its internal control,including the extremely unreasonable ownership structure,the abnormally high proportion of major shareholders,the misconduct of independent directors and audit committee,the neglect of corporate culture construction,the lack of risk assessment,poor implementation of asset management system,the delay of accounting information disclosure,etc.Thus,the failure of internal control in enterprise will lead to the financial fraud and ultimately affect the quality of accounting information.Based on the reasons for the distortion of accounting information of Fushun Special Steel,this article puts forward suggestions on the optimization of internal control from the internal and external perspectives of the company.In terms of internal management of the company,private capital and institutional investors are introduced to participate in the reorganization of state-owned enterprises to resolve the proportion of state-owned holdings.The problem of unreasonable high-level equity structure,establish and improve the risk assessment and prevention mechanism,improve the enterprise's awareness of risk prevention,apply blockchain technology to the enterprise's accounting information system,strengthen the enterprise's control activities,establish and improve the anti-fraud mechanism,and encourage Employees report and expose corruption and fraud,form full supervision,and let the power be enforced in the sun.In terms of external supervision,maintain the independence of external audits and increase the company's cost of violations.By optimizing the internal control of an enterprise,financial fraud can be effectively curbed,thereby improve the quality of corporate accounting information...