Research On The Duty Crime Of Senior Executives And The Remedy Of Internal Control Defects

In today’s company management and operation environment,top managers play an important role,but when facing the pressure of performance and the temptation of money,there will also be a series of negative problems that need to be solved.Financial fraud and even job-related crimes are the more prominent and worse problems.The occurrence of job-related crimes not only affects the company’s own interests,but also brings a series of serious consequences for the capital market itself,such as disturbing the market order,deteriorating the healthy competitive environment,and reducing investors’ trust in the market.At present,the relevant research on the duty crime of senior executives still has corresponding value.As one of the most popular theories to analyze the causes of financial fraud,risk factor theory introduces the causes of financial fraud based on individual risk factors(motivation,moral quality)and general risk factors(fraud opportunities,the possibility of discovery,the nature and degree of punishment after fraud),and analyzes the occurrence of financial fraud,It is inseparable from the joint action of the above factors.The above risk factors are also related to the company’s internal control,and the defects of internal control will have a corresponding impact on the risk factors.In this paper,the five elements of internal control as a starting point,combined with the theory of risk factors,through the analysis of the role of internal control defects in job-related crimes,not only to study the impact of the existence of internal control defects on the job-related crimes of senior executives,but also to study the company’s remedy for the defects of internal control and its significance after the crime.The first part of this paper briefly introduces the research background and significance.The second part defines the concepts involved,such as senior management job-related crimes and internal control defects.Then it introduces the relevant theories used in this paper,including the high-level echelon theory,risk factor theory and five elements of internal control theory,From the perspective of five elements of internal control,this paper analyzes that the existence of internal control defects will increase the possibility of senior executives’ job-related crimes to a certain extent;And through the remedy of internal control defects,we can reduce the company’s internal control defects,so as to reduce and prevent the occurrence of senior executives’ job-related crimes.The third part introduces the relevant laws and regulations on the duty crime of senior executives,and analyzes the current situation,causes and consequences of the duty crime of senior executives.Then the fourth part introduces specific cases to start the case study.From the perspective of the five elements of internal control,it analyzes the internal control defects of China Southern Airlines in the year of duty crime and the role of the corresponding defects in the crime,As well as the year after the crime was exposed,China Southern Airlines made efforts to remedy the defects of internal control to reduce the occurrence of job-related crimes.Then according to the above analysis,based on the case of China Southern Airlines,from the perspective of the five elements of internal control,this paper puts forward some suggestions to reduce and prevent senior executives’ job-related crimes.Finally,the fifth part summarizes the research conclusion of this paper.There are many factors behind the occurrence of senior executives’ job-related crimes,and the defect of internal control is an important factor that can not be ignored.The company’s internal control defects to a certain extent increase the probability of senior executives’ job-related crimes.The corresponding companies can reduce and prevent the occurrence of job-related crimes to a certain extent by checking and filling the gaps and strengthening the attention to the internal control system.On this basis,the corresponding suggestions are put forward from the perspective of the company itself,the capital market,the government and society,It is expected to reduce the occurrence of senior management job-related crimes through joint efforts in many aspects.