Research On Internal Control Defects Of R Listed Company

The promulgation of China’s "Basic Standard for Enterprise Internal Control" in2008 has made internal control more and more important in China.The "Standard" has made clear provisions on the definition,objectives,principles and elements of internal control,and after years of development,China’s internal control management system has become more mature.However,every year,many listed companies are issued with negative internal control audit reports,and in recent years,financial frauds caused by internal control deficiencies have been exposed,which also reflects that many listed companies have problems in the design and implementation of internal control,and there is still a certain distance between the specific practice of the company and the requirements of the Code.This thesis adopts literature research method and case study method,selects R listed company,which had financial fraud incident and the internal control audit report was issued negative opinion for three consecutive years,as the case study object,specifically elaborates the company’s financial fraud incident,internal control deficiencies,etc.,and analyzes the economic consequences of the company’s internal control deficiencies in terms of financial data performance and market reaction,and at the same time combines the five elements of internal control to the results found that in terms of internal environment,R listed company had problems such as concentration of equity,low overall education level of employees,and failure to build corporate culture related to internal control;in terms of risk assessment,the relevant departments of the company failed to effectively identify and assess the possible risks in business processes and failed to take measures to respond in a timely manner;in terms of control activities,R In terms of control activities,the listed company did not strictly implement the payment authorization and approval control procedures,the subsidiaries did not properly control the authorization and approval of information systems,and the control of property protection was not strong enough;in terms of information and communication,the upward feedback of the company’s information was easily ignored,and the horizontal communication between various parallel departments was poor,and the information was not shared in a timely manner;in terms of internal supervision,the relevant personnel of the company were not independent enough and did not perform their duties diligently in their daily work.In view of the above analysis results,this paper believes that the internal environment can be improved by optimizing the shareholding structure,adopting scientific human resource policies,and building a corporate culture conducive to internal control;optimizing risk assessment by cultivating proper risk awareness and establishing a more professional risk management team;regulating control activities by strengthening authorization and approval controls while conducting scientific inventory management;information and communication is strengthened by establishing a unified information and communication platform and setting up reasonable reporting and complaint channels;enhancing the independence of Internal supervision is strengthened by enhancing the independence of internal supervisors,and taking measures to urge them to perform their duties diligently.