Study On The Effectiveness Of Internal Control In Listed Companies

U.S. capital markets at the beginning of this century broke out in a series of financial scandals, Enron, WorldCom and other world-renowned company’s scandal triggered a great concern to the global capital markets, internal control, internal control have begun to evolve into government austerity measures from spontaneous internal governance mechanisms.In July2002, the U.S. Congress passed the Sarbanes-Oxley Act". Subsequently, the Zhengbaiwen Yinguangxia and the CAO internal control issues also led to the concern of our government, in June2008, China’s five ministries jointly issued the "basic norms of internal control", in April2010, five ministries jointly issuedthe "enterprise Internal Control guidelines". China promulgated a series of guidelines and norms of regulatory authorities urgently require listed companies to establish a sound internal control system, and will become an important issue through a series of internal control system to protect and enhance corporate value, so the internal control value for the enterprise. In this article, on the one hand, the study of the internal control deficiencies to explore Chinese listed companies generally internal control deficiencies and internal control of listed companies in China rectification; On the other hand, the internal control reference. Internal control to enhance corporate value is an important topic of current concern, has also become an important aspect of the testing of internal control objectives and implementation effects. Article Xinhua Pharmaceutical Company Limited, a listed company analysis, internal control activities on the enterprise value.In this article, listed companies effectiveness of internal control, the first based on the analysis of the effectiveness of internal control theory, and then through the analysis of the internal control failures, draw conclusions, and make recommendations for listed companies in China’s internal control effectiveness of reference for the construction. In this paper, case study method, systematic approach, comparative analysis as research methods. Xinhua Pharmaceutical Company Limited as a case study the effectiveness of internal control analysis, the internal control deficiencies, and make recommendations by analyzing. Such as innovation than the contention mechanism, strengthen the internal control In addition, the establishment of internal control performance appraisal and evaluation mechanism in order to optimize the effectiveness of internal control of listed companies.The main content of this paper is divided into five parts:The first part, Introduction, Describes the background of the issues raised in this article, the purpose and significance of the study, literature review, the research ideas, research methods, innovative features and shortcomings. The second part of the effectiveness of internal control overview of the theory, internal control theory and the effectiveness of internal control theory. Third part of the listed company’s internal control overview, Analysis of the status of China’s listed companies’ internal control. The fourth part, Shandong Xinhua Pharmaceutical internal control implementation of the Status and Problems. Basic background Xinhua Pharmaceutical Co., Ltd. made a brief presentation, analysis of internal control status of the status quo, as well as the company’s internal control and internal control effectiveness analysis, and related issues and can lead to problems. The fifth part, conclusions and suggestions.This study focus on the effectiveness of internal control in enterprises, in order to optimize the effectiveness of internal control as the premise, has the following innovations:first, clear the concept of the effectiveness of internal control. Second, from the theoretical analysis, system construction, present situation investigation, put forward systematic analysis of enterprise internal control aspects of problem solving. Third, the case study approach, demonstration of Xinhua Pharmaceutical Limited by Share Ltd in the internal control of major issues of validity analysis, in-depth analysis of its causes and evolution process, and the corresponding problems of listing Corporation in China the effectiveness of internal control development suggestions.