Research On Internal Control Deficiencies For Xinhua Pharmaceutical Co.Ltd's

In recent years, the internal control is causing financial fraud, and makes the situation of the companies' bankruptcy. From Guang Xia yinchuan, and the green earth, fu-sheng wan in China to the Enron, Worldcom, Xerox and other companies in the scope of the world. The problem of internal control not only makes the investors lose their confidence in enterprises also affects the stability of the securities market. It also makes more and more companies begin to pay close attention to the effectiveness of internal control and the necessity of the internal control auditing. In China, the relevant documents of internal control are issued from 2008. On June 28, 2008, the ministry of finance, securities, insurance regulatory commission jointly issued "enterprise internal control basic norms" as the guidance of domestic internal control files, which is used to help enterprises to strengthen the management level of internal control, risk awareness, promote the healthy and orderly development of enterprises. At the end of March 2012, the Chinese institute of certified public accountants issued the auditing situation about listed comanies in 2011. The most important event is that Shine Wing accounting firm issued the first adverse opinions of internal control auditing report to Shandong xinhua pharmaceutical co., LTD in China. The incident causes the considerations and thinking by social authority.On April 30, 2012, through the analysis of the our country domestic and overseas listed companies in 2011 at the same time performing system of enterprise internal control specifications of analysis report issued by the ministry of finance and the China Securities Regulatory Commission, it found that there are about 73.1% in the 67 enterprises in the annual disclosed report of inside and outside the company existing internal control defects during the reporting period, but these 49 enterprises, which have internal control defects have do not give out the adverse internal control auditing report the problem. Only xinhua pharmaceutical company's internal control was issued by the Shine Wing accounting firm, which is invalid. This article will based on the first adverse internal control auditing report issued by CPA to xinhua pharmaceutical to study the xinhua pharmaceutical co., LTD internal control defects, the causes of problems and then puts forward the countermeasures. First of all, through the present situation of the five elements in internal control of the company to study respectively, it was used to find that xinhua pharmaceutical co., LTD major defects of internal control. They may be more than an internal control problem and also may be due to a variety of control, which have the problem of aggregation. Then, put forward the xinhua pharmaceutical internal control defects and discussed them one by one. The source of the problem may be the company level's internal control problems and business level's internal control. Finally, we would talk about the countermeasures specifically, which could help enterprises to enhance the effectiveness of internal control, optimize enterprise's operation and management in the future.