The Research About Internal Control Audit Of LYGT Company

In recent years,the international and domestic market had broken out some serious financial fraud cases. Although the cases background reasons were different, the same characteristic was the company’s internal control was failed or defective, and the defects lead to significant financial misstatements. Related enterprise management agencies of each country has regulatory focus on financial report, to paying equal attention to financial reporting and establishment and perfect internal control. During 2008 and 2010, Chinese related departments issued“The Basic norms of internal control”and“Internal Control Audit Guidelines”, and calling for the listed companies which are executing internal control standard system to hire accounting firms to audit the company’s internal control effectiveness. Establish a complete and efficient internal control is one of the inevitable requirement of stability and development of enterprises. Internal control is used to achieve business goals, and to protect the business goals can be reached on the need for internal control audits. Therefore, to solve the company’s internal control deficiencies audit, internal control audits to ensure an orderly manner, to strengthen internal controls management, to avoid unnecessary economic losses, to promote the efficiency of the internal control audit has important practical significance.Under the environmental impact of domestic and foreign markets, business audit of internal control is imperative. Object of study for the internal control audit, the audit of internal control theory, research methods and elaborate process, and disclosure evaluation. The LYGT company as a case study of literature, field research, case analysis, etc., around the elements of internal control LYGT company, its objective and detailed analysis and discussion, and then find and summarize its internal control audit work problems and causes of the problem. Conclusions of this study are as follows: The company should set scientific audit of internal control and internal control systems and organizations, ways to improve the internal control audit work, the audit work flow optimization. Establish incentive mechanisms to strengthen staff training, to form an audit team with a professional and comprehensive skills while enhancing the effectiveness of follow-up audit. In order to improve the internal control audit work problems, to promote efficient audit.Framework of this paper into four parts: The first chapter is an overview of the internal control audit-related issues, elaborated the concept of internal control and audit objectives, audit norms and procedures of internal control methods. The second chapter is the company’s internal control audit LYGT situation, the overall presentation LYGT company and internal audit operation. The third chapter is LYGT company internal control issues and reasons exist audit of internal control issues LYGT company audit and a comprehensive analysis of the causes of multiple perspectives. The fourth chapter is to improve the internal control of the Company LYGT audit proposal put forward recommendations for effective audit of internal control issues.