Research On Internal Control Audit Of Listed Companies

With the rapid development of China’s economy,the active financial market makes listed companies emerge as the times require.The problem of financial fraud also follows.The problem of internal control of Listed Companies in China is the root of frequent financial fraud.In this regard,China’s regulatory authorities began to focus on the disclosure quality of financial statements of Listed Companies in the past,and began to shift to more stringent requirements,that is,accounting firms need to verify the internal control of listed companies and disclose the internal control audit reports.Internal control audit is regarded as the re control of internal control,which is not only conducive to improving the level of business management,but also of great significance to reduce the loss of investors and promote the steady and orderly development of the capital market.Due to the late implementation and research of internal control audit in China,it is still in the development stage.There are many problems in the internal control audit of Listed Companies in China,including the lack of rational demand for internal control audit,the lack of specific standards to ensure operability,the lack of specialized personnel in internal control audit,and the widespread risk of internal control audit.This paper studies the main problems of internal control audit of Listed Companies in China by comparing two typical cases of failure of internal control authentication and success of internal control audit.Changsheng Biotechnology Co.,Ltd.used to be a leading enterprise in the vaccine industry.It is a typical single family enterprise.Since its listing,its performance has steadily improved.In 2017,its operating revenue was 1.553 billion yuan,and its net profit was up to 566 million yuan.Such a strong and competitive star enterprise eventually became the first A-share company to be forced to withdraw from the market due to major violations of laws.The root cause lies in the end The bottom is the failure of internal control.There are many signs that the internal control of Changsheng Company has already failed.However,Zhitong Accounting Firm has issued an unqualified internal control assurance report for three consecutive years,and its assurance failure is self-evident.On the contrary,the internal control audit report of silver based Alkene Carbon New Materials Co.,Ltd.has been rejected by Zhongxinghua Accounting Firm for four consecutive years.The success of internal control audit not only protects the interests of potential investors and investors,but also safeguards the order of capital market.In order to solve the main problems of internal control audit in China’s listed companies,this paper proposes to improve the internal control audit environment of listed companies,improve the internal control audit needs of listed companies,and guide listed companies to pay attention to the internal control self audit,It is suggested that we should improve the system of internal control audit,enhance the professional ability of certified public accountants,and strengthen the punishment of internal control audit failure.