An Investigation On The Failure Of Continuous Monitoring Of Internal Control

In recent years,our companies eventually lead to business failures which were occurred frequently,because of some or all of the failure mechanism of continuous monitoring that making internal control losing efficacy.In 2009,our country started to implement the basic norms of enterprise internal control,and the basic content was in line with the request of the COSO report which was internationally recognized as framework document,which not only marked the formation of the internal control system,but also acted on international convention.In recent five years,China Securities Regulatory Commission was improving the stock listing rules,strengthening the fair disclosure and the periodical reports of the statutory disclosure,which could enhance the timeliness and completeness of information disclosure and superintendency strength,clear the delisting rules,enhance the administrative consciousness of the company top management and construction and improve the internal control mechanism,in order to insuring efficient work lawfully and compliantly.This Investigation choose*ST bo yuan as an example,which was forced to delisted caused by illegal disclosure in 2016.Collecting its daily operation and management,this investigation combine the requirement of the continuous monitoring in COSO report including organizations select,promote and implement,with the detailed content of control activities and responsibilities in the basic norms of enterprise internal control to analysis the process of the board of directors and the audit committee and internal audit department of continuous monitoring mechanism failure problems in *ST bo yuan company operating.This Investigation chose four aspects of *ST Bo yuan to specifically analysis the continuous monitoring of internal control,such as the organization and responsibility,the object,the work of assessment and finding and following up the defect report.establishing a perfect continuous monitoring mechanism,defining the responsibility of the continuous monitoring of the subject,advancing in monitoring and guidance to the design of internal control,making the operation of monitoring and evaluation,reporting and dealing with the result of the internal control after the implementation and establishing the internal control continuous monitoring management system.