Case Study On Internal Control Of ZD Limited Company

The basis of aquaculture development make up a natural fishery resources limited problems, maintain the balance of ecological environment, it holds the important status in the national economy. And because the particularity of the aquaculture industry, inventory management and inventory work is particularly important, it should be start from company’s internal control. Internal control can be said to be one of the most important parts of modern corporate governance system, and the basis of enterprise management can be carried out smoothly. Modern enterprise management theory and management practice has proved that establishing and perfecting the enterprise’s internal control system is enterprise’s all management work.Actually ZD company’s huge losses may not be accidental, its internal control system is not perfect and the unstandard corporate governance structure is the main reason. Popular speaking, internal control system is the "firewall" to control enterprise risk and avoid fraud, once "firewall" exist any subtle bug, financial risk will avail ourselves of this opportunity to make trouble, resulting in the failure of internal control system of enterprise, even cause the business crisis directly. In order to prevent this problem, besides strictly abide by the relevant departments issued internal control supervision and management laws and regulations, enterprise should also according to their own actual situation of reasonable design of internal control framework and security mechanisms to ensure its effective operation, which quickly and accurately identify and prevent risks, and strive to in the rapid development of the market environment and political, legal environment protection dovish beg development. Strive to this goal in the enterprise management implementation has attracted the attention of many scholars and executives.In this paper, the problems of ZD company from four aspects are analyzed, and the following conclusions are drawn:In the first part, through the analysis of ZD company’s top ten shareholders and the proportion of shareholding, the conclusion is drawn that the organizational structure of ZD company is not reasonable, and the stock ownership is highly concentrated.The second aspect, navigate through the relevant information and data, lists ZD company after the listing of the cast of Miao area and harvested volume tables, the table data and the related assets and finally ZD company internal control risk prevention awareness is weak the conclusion.Third, from ZD Company seed production stage of supervision to the breeding stage of risk control and early warning system to monitoring method for disk third part analyzed the existing internal control system, it is concluded that ZD company’s internal control system is not perfect conclusion.In the fourth aspect, through the comparison of the specific project of 2008--2014 company’s internal control in ZD, the paper analyzes the problems of the company’s internal control evaluation and information disclosure.In the last part of this paper, the ZD company’s internal control status of the rectification measures and suggestions, to improve the ZD company’s existing situation, should do the following:First, it should be from the corporate governance structure, the role of the board of directors, a clear management authority and responsibility to establish and improve the internal reporting system and cultivate excellent corporate culture and other aspects of improving the internal control environment.Second, through the establishment of risk management objectives, collect information risk management of risk identification system, using mathematical model of quantitative analysis-risk assessment, make the risk management strategy in these six steps to improve risk assessment system of ZD company.Third, mainly from the performance evaluation and performance incentives, standardize business processes, separation of duties and other aspects of internal control activities.Fourth, for the ZD company’s information system to evaluate and make recommendations for improvement.Fifth, through the simple and clear flow chart of the ZD company’s internal oversight mechanisms to make recommendations for improvement.