Research On The Internal Control Environment Of SME Board

May 28,2004, the SME board's first stocks-----002001 prospectus issued, declaring the formal operation of small and medium enterprises. June 25,2004, The Shenzhen Stock Exchange held the first SME board listing ceremony.The SME board created since 2004 has been impressive growth rate, the total number of listed companies (as of December 3,2009) has reached 313, and showing a prominent main business, growth is better, fund-raising project progress smooth, benefits are good, great importance to investors a reasonable return, cash dividends high, major shareholders of listed companies and their subsidiary companies of funds occupy less external guarantees are mainly subsidiaries of the holding of security and so on. At the same time, we also noted that the SME board in private enterprises as the main theme, common stock "due to the dominance" phenomenon, but also the phenomenon of family-controlled with the more serious.Chairman and prominent position, with an absolute controlling stake. Affected by this shareholding structure, private listed companies, ownership and management separation is very low, most companies have a management board members to serve as president, vice president and other senior positions and so on. This small board listed company's internal control and risk management have great negative impact on the decision-making mechanism and the binding mechanisms need to be improved.In this paper, I used 273 listed companies, the SME board as the research object, to the 273 listed companies 2008 annual reports and internal control self-assessment reports, as well as intermediate structure on the internal control issued by forensic for data sources, from the shareholders to start control mode, sub-5 context, the analysis of China's medium and small plates listed on the company's internal control environment:1,corporate governance structure; 2, institutional settings, and the distribution of competences; 3, internal audit; 4, human resources strategy,5, corporate culture. The five-part against the emergence of some problems are classified, and prescribe the right medicine, make feasible recommendations.The main conclusions of this paper are:1,These are over70% private enterprises; 2, All small and medium sized enterprises board adopted the same corporate governance structure; 3, The company's centralization degree of actual control over high, the actual controller, Chairman and General Manager of the phenomenon of people together for one person;4,Independent directors, the oversight function of concern can be managed separately with the Commission of independent directors, and assigned to the target medium and small plates scheme; 5, Board of Supervisors members of the low quality and can not play a real oversight functions, should improve the quality of supervisors, and given more authority;6, The internal audit settings uneven, should be attached to the board of directors to strengthen its oversight and management functions; 7, Enhance corporate culture.