Research On Y Group’s Financial Internal Control

In May 2008,the Ministry of Finance and National Audit Office issued the "Basic Standards for Enterprise Internal Control",which required all listed companies to evaluate the effectiveness of internal control and disclose self-evaluation reports.The Shanghai and Shenzhen Stock Exchanges have also put forward specific requirements for the disclosure of internal control of listed companies.At present,the system of "Basic Norms for Enterprise Internal Control" has been implemented nationwide for more than ten years,but there are still problems with internal control of enterprises.The "Blue Book of Listed Companies’ Implementation of the Corporate Internal Control Standard System in 2019" released by the Ministry of Finance shows that since 2007,the number and proportion of listed companies disclose internal control evaluations that are not overall effective have been increasing year by year,and since 2013,it is particularly obvious.In 2019,its number and proportion reached the highest,with a total of 129 companies,accounting for 3.54%.In addition,among 730state-owned enterprises that separately disclosed internal control evaluation reports,143 disclosed internal control deficiencies,accounting for 19.59%.This thesis first explains and expounds the background source,research purpose and significance of the study on financial internal control,selects Y Group as the case study object,reviews relevant research status at inland and abroad,and briefly introduces the research content,methods and technical routes of this thesis.Then,based on the firsthand information,documents and inspection results obtained during the internship of Y Group,the COSO framework is used to summarize and comment on the current situation and existing problems of the internal control of the case company’s financial affairs.It also analyzes the three major links of financial control activities,including sales and collection,production and warehousing,and purchase and payment that have certain defects,and discusses the causes.Subsequently,based on the COSO model,this thesis optimizes the Y Group’s financial internal control system,and incorporates innovative ideas such as qualitative financial internal control nodes,risk control,and financial information technology improvement into the optimization ideas.Among them,the three major links of Y Group’s control activities deficiencies,from risk identification to control nodes of key financial control activities are reorganized,and targeted optimization solutions are proposed.Finally,this thesis clarifies specific ideas for the effective implementation and normalization of financial internal control after optimization by Y Group,meanwhile,it puts forward safeguard measures for the continuous and effective operation and update iteration of Y Group’s financial internal control system from specific levels such as system,culture and technology.