The Research On The Internal Control Of China Agri-Industries Holdings Limited

The rapid development of economy let people live a high quality life, but it also brings some negative problems. In recent years, some food production enterprises produce the unqualified and harmful products in order to obtain higher benefits. The food safety problems already become the focus of people and the government. Food safety problems are challenging the credibility of the enterprise. It let the consumers in extreme panic about the current food safety. Food safety incidents made the public people increasingly worried.The major food safety incidents result in decline about the trust of the consumers for food enterprises. Food production enterprises become the object of blame and facing the huge risk. There are many reasons for this situation, but the internal reason is the failure of the enterprise’s internal control system. To improve the internal control system is the key point of the food safety problems. In recent years, some food enterprises are already to establish the internal control system based on the COSO framework. China Agri-Industries Holdings Limited is one of the representative food enterprises. With the development of market economy and the series of questions that appear in the industry, highlighting the theoretical framework and practical aspects cannot converge, the framework cannot be a good guide to implement the internal control system. Also point out the necessity of updating the COSO framework. The paper based on the theoretical framework of the new COSO internal control framework (hereinafter referred to as the COSO new framework) to study the operation of China Agri-Industries Holdings Limited’s internal control, made it complete the internal control.The paper based on the theoretical research, combined with the actual case analysis, use the benchmarking to analyze the internal control of the China Agri-Industries Holdings Limited, and then put forward the improvement opinion. First of all, the paper explains the research background and significance, main contents and research methods, research status and innovation points and features. The second part explains the basic theory of internal control, and briefly expounds the contents of the COSO new framework, thus we can get more detailed understanding of advantages of the COSO new framework in2013. The third part analyzes the effect of China Agri-Industries Holdings Limited’s internal control system. According to COSO new internal control framework, evaluates the internal control system about China Agri-Industries Holdings Limited, points out that the shortcomings and the worth reference. The forth part explains the measures based on the core principles of the COSO new internal control framework to improve the internal control system. The last part is conclusion of the paper, points out that the paper’s research limitations and prospects.