A Case Study Of Financial Fraud In Zhangzidao From The Perspective Of Internal Control

With the rapid development of economy,the internal control problems of enterprises are becoming increasingly prominent.The problems of financial fraud and distortion of financial statements caused by the defects of internal control are also common.In the2020 annual report audit disclosed by the China Institute of certified public accountants,817 listed companies hired firms to audit their internal control.From the opinion type of audit report,59 issued negative opinion audit reports and 2 issued audit reports that could not express their opinions.Due to the influence of internal control defects,more and more enterprises have been issued negative opinions on internal control audit in recent years,so it is urgent to strengthen the attention to enterprise internal control.Firstly,this paper makes a comprehensive review of the relevant theoretical content.Taking the successive "scallop running" events of Zhangzidao company as an example,it shows that the enterprise has a particularly serious internal control problem.Further from the perspective of internal control,this paper analyzes the causes of financial fraud of Zhangzidao company,and summarizes the countermeasures to prevent the occurrence of financial fraud.It is found that the internal control of Zhangzidao company has some problems,such as weak internal environment foundation,out of control risk assessment management,poor execution of control activities,illegal disclosure of biological assets information and ineffective supervision.These problems have seriously affected the normal operation of Zhangzidao company,and caused the consequences of falling share prices,facing claims from shareholders,and the company and its executives being punished by the CSRC.In view of the internal control problems of Zhangzidao company,this paper puts forward some suggestions to improve the internal control environment,strengthen risk assessment and response,ensure the implementation of control activities,improve the information disclosure of biological assets and improve the company’s supervision mechanism.The purpose of this paper is to analyze the problems existing in the internal control of Zhangzidao company through the financial fraud event,and to warn the consequences.The enterprise can be inspired and provide corresponding reference for other similar enterprises,so as to better strengthen the internal control of the enterprise and optimize the market environment.