A Case Study Of Defects Disclosure Of The Impact On The Financial Performance Of The Internal Control Of Company X

Information disclosure of internal control of listed companies issue is always a hot topic in China and the world, as to establish and improve internal control is the basis for production and business activities, and people are increasingly aware of the internal control for the development of an enterprise of importance. Although the internal control system by a number of laws, regulations and the impact of regulations have greatly improved, but the internal control system in our country is still in the initial stage, the information disclosure of internal control are still in transition voluntary disclosure to mandatory disclosure. And most companies can not disclose the company's internal control deficiencies, but formally meet the requirements, so the theory put into practice, there is still a long way to go. Now, whether it is the company's shareholders, creditors or potential investors, we are increasingly concerned about the long-term development of the company. Thus, they not only to look at the financial performance of the above, more and more attention to improve the company's internal controls and the company's growth capacity and operational capability.This paper reviews the internal control deficiencies disclosure and financial performance of the relevant research literature, then preclude the case study method, selected the company as the research object case X, trying to examine the analysis of the following three questions:first, respectively, from the internal environment, risk assessment, control activities, information and communication, and internal oversight of these five factors start influencing factors of internal control deficiencies X company analysis; second, analysis of company X when changes in internal control deficiencies disclosure around financial performance; third, specific analysis Company X after the disclosure of internal control deficiencies, taken measures that led to changes in corporate financial performance. Through case eventually found:control environment, risk assessment and control activities is an important factor leading to internal control deficiencies company X. Next, after the disclosure of internal control deficiencies, after 2014 and a series of corrective measures, financial performance have increased substantially. Results of this study may provide for the emergence of the listed companies as well as regulators examine the company's internal control those specific aspects of the issue reference, most notably from the real case, disclosure of specific internal control weaknesses analysis of business brought about by the changes, and the impact of these changes on corporate financial performance, a number of other companies also have reference.