Study On The Internal Control Of The Listed Agricultural Companies

As a representative in the advanced agricultural production force in China, listed agricultural companies are born and developed as the result of China's development and merge of market-oriented agriculture and capital market, which also reflects the mutually benefited and promoted relationship between agriculture and securities market.The birth and development of the listed agricultural companies is quite important to the agricultural restructuring, industrialised management of agriculture, improving agricultural products quality and agricultural management, upgrading international competitiveness of agriculture and quickening the agricultural modernization in China. However, in recent years, a series of problems have led to the poorer operation performance, higher risks of the listed agricultural companies, which has consequently affected the competitiveness and sustained development of the companies. The reasons mainly lie in the failure of the internal control in the listed agriculrural companies. In order to ensure the build and perform of the internal control, some govement departments and income organizations have make some related rules and laws. Publishment and implement of these rules and laws are important to companies and socialist economy. The effect of internal control on companies'management is obvious. Most companies have made internal control system. But the purposes have not been achieved. Therefore, in order to study on the problem of listed agriculteral companies, we must look for the reasons of failure internal control with internal control syetem. Based on the industry characteristic, the internal control emphasises of listed agricultural companies are internal control environment, internal risk control, evaluating of internal control and publishing of internal control. Based on these ideas, the paper conducts its study.This thesis takes listed agricultural companies as study object. Based on the analisis of the industry characteristic and problems of internal control, this thesis puts forward ways to perfect listed agricultural companies. We should learn from the COSO report"risk management of companies". Internal control system consists of eight factors including control environment, enactment of risk object, risk proceeding distingushing, risk appraisal, risk reaction, information and communication, control activity and supervision on internal control. On the problem of listed agricultural companies'internal control, the key factors are control environment, risk control including enactment of risk object, risk proceeding distingushing, risk appraisal and risk reaction and supervision on internal control. This thesis emphasizes the practice of internal control in listed agricultural companies. How to build internal control system is not the content of the thesis. The thesis consists of nine chapters, and the contents are as follows:Chapter one, which is the part of introduction, explains the research background and purpose, and briefly reviews the internal control research in home and aboard. It also clearly purposes the research approach and the ways of thinking, and puts forward some possible innovations.Chapter two briefly reviews the concept of internal control. Firsty, this chapter expounds the meaning of internal, control and internal control. Then it introduces the scope of internal control and objective of internal control in the leading internal control objective framework. Furtherly, it confirms the relationship among internal control, management, risk management and manegement control. Lastly, the components and structure of company internal control have been introduced. This chapter mainly introduces the COSO reports related to integrated framework of internal control and enterprise risk management framework. The chapter lastly expounds the meaning of internal control in listed agricultural companies.Chapter three, problems of internal control in listed agricultural companies. The chapter analyzes the development actuality of listed agricultural companies and the need to build internal control system. The chapter provides the way to improve internal control of listed agricultural companies based on the analysis of the main problem in internal control system. The key factors lies in control environment, risk control and supervion on internal control.Chapter four is internal control environment of listed agricultural companies. It firstly points out that internal control environment includes internal environment and exterior environment. Then it further introduce the factors of internal control environment. Finally , it analyzes internal environment and exterior environment of listed agricultural companies and sums up the ways to improve internal control environment.Chapter five, internal risk control system of listed agricultural companies. This chapter introduce the meaning of risk. It emphasizes stratagem risk. Risk management system includes risk management mechanism, risk proceeding distingushing, risk appraisal and risk reaction. According to COSO enterprise risk management framework, internal risk control mainly includes enactment of risk object, risk proceeding distingushing, risk appraisal and risk reaction. Furthermore, a new method of multiple index synthetical evaluation with time series of public agricultural companies is provided. This method can distinguish management risk of companies comprehensively. Lastly, this chapter introduces strategic risk control of pluralistic operation in listed agricultural companies.Chapter six, evaluating and reporting patterns of internal control in listed agricultural companies. Firsty, this chapter expounds two leading evaluating and reporting patterns of internal control. It also briefly expounds chinese evaluating and reporting pattern of internal control. Then it expounds evaluating and reporting procedure and methods of internal control. Appraisal system of internal control mainly introduces three appraisal styles of internal control: self-appraisal, internal auditing and supervised by others. These three styles consist of appraisal system of internal control. They are all important and can not be ignored. Its emphasis is to analyze every subject of evaluating and ways of evaluating. In addition, this chapter introduces comprehensive evaluating way, another evaluating way that uses principle of blurred math and maximizing deviation evaluating method.Chapter seven, evaluating system and reporting system of internal control in listed agricultural companies. Firstly, it analyzes the main problems of evaluating system and reporting system of internal control in listed agricultural companies. Then it provides the improved ways. Listed agricultural companies should adopt self-appraisal way, improve corporate governance, etc. It finally points out that three ways must be valued in order to improve publishing system which are strengthening the construction of internal control laws, improving related prescription of publishing, strengthening supervision of publishing.Chapter eight, development trend of internal control in listed agricultural companies. It points out that theory and practice of internal control is a process of development and perfect, internal control theories can be conformity, there are area difference and environment difference to internal control and there is also industry difference about internal control.