Research On Internal Control Optimization Of Related Transaction Of A Mining Company

With the rapid development of Chinese social economy and capital market,the number of listed companies is increasing,and more and more affiliated parties are involved,and related transactions have become more complex and hidden.Related party transactions can indeed reduce the transaction costs of enterprises and improve their transaction efficiency,so as to promote effective transaction cooperation,but on the other hand,related party transactions can also be used as a hidden means for the actual controller of listed enterprises to hollow out the listed enterprises and seize the rights and interests of minority shareholders.This behavior will not only reduce the role of accounting information,but also may mislead the decisions of shareholders,thus damaging the interests of minority shareholders.As the main body of affiliated transaction,enterprises should regulate affiliated transaction from the internal of enterprises,put an end to the behaviors that infringe on shareholders’ interests or bring business risks due to affiliated transaction,and properly limit the power of the actual controller of the company,so as to achieve the purpose of effectively controlling affiliated transaction and minimizing the business risks caused by it.At present,the stability of the internal control of enterprise operation and development more and more important,its supervision and administration of the company itself is in essence a kind of constraint mechanism,its purpose is to balance the rights and interests distribution within the company,coordinate business owners and the interests between the shareholder and operator,make the enterprise staff to effectively fulfill its reasonably the corresponding responsibilities.Capital market in our country,many companies because of the connection transaction the defects of internal control,lead to the problems,huaye,tianma,equity,and the thesis case company is A mining company,because of its internal control system,the defects of company assets by the actual control of people through the connection transaction illegal transfer,resulting in the loss of company property,Infringe on the interests of minority shareholders,so the research of this thesis is very important for many enterprises.The case company of this thesis,A Mining company,was placed on file and punished by China Securities Regulatory Commission in 2021 due to A large number of related transactions and external guarantees not disclosed in regular reports,involving more than 3 billion funds.The main reason for the problems in affiliated transactions of mining Company A lies in the abuse of power by the management.Its internal control system lacks control over the risks of affiliated transactions on the whole,resulting in the loss of funds and endangering the longterm development of the company.This article from the internal control,internal control of related party transactions related theoretical analysis,refer to the related theory and literature on the basis of theory combined with practice,with the examples of listed company is A mining company as the research object,through the five elements of internal control,A deep insight into the actual control of A mining company,using the connection transaction the behavior of the transfer of company assets,Combined with the actual situation of the internal control of affiliated transactions of A mining company,this thesis puts forward targeted suggestions to promote the improvement of the internal control system of the company,so as to improve the effectiveness of the internal control of affiliated transactions of A mining company and prevent the business risks caused by affiliated transactions.The innovation point of this thesis is the innovation of the research perspective and case.Currently,the internal control system of Chinese mining companies is generally not perfect,and the risk of related transaction is higher than that of other industries.From the perspective of research,this thesis is based on the perspective of strengthening internal control to reduce the business risk caused by affiliated transactions,and there are relatively few similar types of research.