Research On Perfecting The Standard Of Internal Control Defects In Listed Steel Companies

The identification standard of internal control deficiencies is a key problem of internal control assessment, and it play a key role in evaluating the effectiveness of internal control. Basic Standard of Internal Control for Enterprises and its guidelines provide that enterprises can determine their own standards of internal control deficiencies according to their industry characteristics, firm size and the ability to afford risks, etc. Because of the lack of rule of guide, the disclosure of internal control deficiency information is in low quality. To make the identification of internal control deficiencies more scientific, it is necessary to establish an industry standard system of internal control deficiencies, providing normative guidance for enterprises to develop specific criteria.Iron and steel industry is one of the pillar industries, has an important effect on economic development, which occupy an important position in the value of the national economy. In recent years, however, due to many factors such as overcapacity and prices down, some companies are suffering serious business losses. Under the decline situation of the overall industry, the risk tolerance of listed companies decreased, in the result, more deficiencies in internal control exposed and the influence more serious. Through consolidation of the steel industry listed company’s internal control deficiencies identified standards found that in the current principled guidance, the standards are too rough to reveal deficiencies, in order to promote the smooth operation of enterprises, promote the industry transformation and restructuring, we need to further improve the cognizance standards of defects in internal control of listed steel corporations.This dissertation argues that the use of both principle-orientated and rule-orientated approach can theoretically achieve complementary advantages, which need to build a standard system to regulate the identification of defects in internal control, the defects which other than the standard system will be identified by the principle-oriented approach. On the basis of summarizing the literature and related theory, with Liuzhou Iron and Steel Company as a case study, firstly, this thesis collects the steel industry standards of internal control deficiencies and studies from the five elements of internal control regulations to build a standard system of internal control deficiencies. Then combined with industry recognized standards to further improve the company’s standard system of internal control deficiencies and finally to re-identified internal control weaknesses moreover, make corrective recommendations to promote the achievement of internal control objectives.