Research On The Perfection Of Internal Control Of Zangge Holdings From The Perspective Of Risk Management

Before 2004,there were many incidents of financial fraud in the United States,causing heavy losses to the public.The COSO committee believed that the original internal control framework could no longer meet the needs at the time.Therefore,they started new research and publicized the risk management framework.Since then,internal control has entered the section of ERM.After a period of time,the old version of risk management has become outdated.For as much,in 2017,the COSO committee updated the framework again.At the same time,the relevant departments of our country have also followed the international trend and presented the Solid Norms and ensuing qualifications,following the international trend.And the significance of internal control over firm management shouldn’t be underestimated.However,our country’s securities market regulatory policy is lagging behind.Many listed companies have repeatedly challenged the bottom line of regulation at the beginning of their listing.When some companies implement internal control,the company’s top executives,especially the top leaders,will drift away from internal control,even they use internal control as a trick of controlling the company.The consequence is that the internal control cannot exert its due effect.When the leadership takes the lead in breaking through internal control,it sets a bad "tone" for all employees and creates hidden dangers for the failure of certain control links.Therefore,the pure internal control system is no more suitable for the timeless development and operation of a firm,and the internal control based on ERM has become a focused research field of research.The case firm selected in this tractate is Zangge.Due to significant malformed control procedures,financial reporting multiple changes,such as the enterprise’s reputation caused serious influence,such as non-fair related transactions、violation guarantee and financial reporting multiple changes etc.such as the enterprise’s reputation caused serious influence Because these are unusual circumstances.As a member of the COSO2017,this article has unearthed some justifications,except for an undue concentration of the controlling shareholder’s equity、a high level of strategy and target setting、an ineffective risk assessment of significant events、an absence of effective information communication channels,and audit department staffers who did not take their responsibilities seriously.Finally,this article offers some recommendations,such as synchronizing target setting with the firm’s present predicament,enforcing a risk-oriented audit,and so on.