| Listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange in 2011-2013, large state-owned enterprises occupied more than a half in the list of negative opinions of internal control audit reports. The reason is that the state economy, leading the development of the past era, some of the restructuring of large state-owned enterprise established internal control without adding value, and confusion unreasonable organizational structure of corporate governance structure, as well as staff professionalism needs to be reason improve other aspects, there are many problems in internal control. Shen Ji Group Kunming Machine Tool Co., is a representative company of listed companies. March 30, 2015, the accounting firm KPMG internal Kunming Machine Tool internal control issued a negative opinion of the audit report, so that the latter became in 2014 the first disclosure of internal control there are significant design defects listed companies. Reference herein COSO(The Committee of Sponsoring Organizations of The National Commission of Fraudulent Financial Reporting)2013 release of "Internal Control- Integrated Framework",my paper analysis the internal control if Kunming Machine Tool, and analysis to identify Kunming Machine Tool internal control deficiencies, thus improving the design of optimized internal control system of Kunming Machine Tool, for the same Improved corporate internal control system to give inspiration.This paper is divided into five chapters. The first chapter is an introduction, including research background for the article to explain the significance of research and research framework, research methods and innovations. The second chapter is literature review. This chapter summarizes the development of the internal control relevant literature theory and internal control system building, to study abroad before the adoption of the relevant research literature, summed up in the direction of the lack of direction and identify methods of this study. The third chapter is the theoretical basis and framework 2013 COSO presentation. The first part introduces the theoretical basis of internal control. The second part of the main content and core principles 2013 COSO framework were introduced, and with older COSO framework were compared. Chapter Four case studies, Kunming Machine Tool, for example, closely integrated with 2013 COSO spiritual framework, according to the five elements and 17 different categories to find the core principles, and the causes of major defects of Kunming Machine Tool internal control deficiencies. Learn the spirit 2013 COSO framework, combined with case studies of Kunming Machine Tool control internal defects found, to optimize the design of its internal control system, and put forward policy recommendations to other similar enterprises. The fifth chapter is the conclusion, summarizing the contents of the text, and proposed problems and prospects for the future of this study.From the research and analysis I found: 1.Kunming Machine Tool organizational structure design is unreasonable, management and governance layer of confusion, internal publicity is not in place, subject to change corporate culture; 2.between the business units and functions lateral information poor communication; 3.responsible for supervision of the activities of the internal audit department charter is no clear work instructions; 4. lack of contingency plans for the enterprise; 5. Risk Assessment unclear objectives. The reason if these shortcomings and lacks are old ideas, the internal control system construction lag, the concentration of power and the low quality of the staff and other internal controls. In response to these internal control weaknesses and deficiencies, this paper presents relevant optimization tips. |
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