Research On Internal Control Of Automobile Manufacturing Enterprises-in JB Company's Case

At the beginning of this century, scandals of the United States Enron and WorldCom broke out.Under the impetus of such incidents, the US market and the US government began to re-examine the financial risk of fraud due to severe internal control deficiencies.Subsequently, in order to combat this kind of fraud and chaos resulting from lack of financial internal controls,US President George W. Bush signed in July 2002 and adopted the "2002 Public Company Accounting Reform and Investor Protection Act", referred to as "Sarbanes-Oxley Act"."Sarbanes-Oxley Act" is related to an important milestone in the field of US securities and law.First, it marks the US government's supervision of listed companies no longer just stay in the disclosure stage, it turned into a moderate government regulation stage.Second, the law improved the listed company's audit system, and strengthen information disclosure, which is still copied by various countries.Then, based on our own national conditions, in 2008 it issued the "basic norms of internal control".After the April 2010, government release of "Enterprise Internal Control Guidelines."The "Guidelines" is completed by the Ministry of Finance and joint together to five ministries.This is our country's internal control guidance documents which is learned from foreign advanced experience and combined with our own actual.It marks Chinese enterprises internal control system has been basically completed.Since 2010, China's automobile manufacturing industry has entered a period of rapid development.In 2014, the national auto industry running smoothly, the domestic market annual automobile production and sales is over 23 million, which for six consecutive years won the first in the world. Since 2015, subject to the impact of excess capacity and the impact of the rise of new energy vehicles,sales growth of most automobile manufacturing enterprise slowdown or even decline.In this environment, JB company, as a large state-owned listed companies in the automotive industry,improve and perfect its internal control could help to improve its own inherent problems, improve the authenticity of financial data and enhance their own forward-looking strategic decisions.On the other hand, state-owned enterprises primary task is to increase the value of state assets.State-owned enterprises establish modern enterprise system of internal control,can make a smooth and efficient operation, to achieve the company's own strategic objectives.In this paper, I used literature research, investigation and analysis, qualitative inductive analysis and case analysis.First, the writeranalyzedprevious research on internal control.Then, from the basic concept of internal control starting, systematically expounded the various elements of internal control framework.Guidedby internal control theory, in this paper, we use automobile manufacturing listed company JB as the case.We start from the first-hand information at its disposal,and summarized the JB company's internal control system construction and operating conditions.We pointed out problems of internal control and explored thereasons for a preliminary.The last part, with respect to theproblems in internal control of the JB company, we proposed the corresponding countermeasures. Besides, We are hoping to provide some reference and experience of large and medium state-owned manufacturing enterprises to build internal control system.