Study On The Defects And Improvement Of The Internal Control Of Wind Power

Internal control consists of five major goals:reasonable assurance that the enterprise management legal compliance,asset security,financial reports and related information is true and complete,and improve the management efficiency and effect,promoting the realization of the strategic development of enterprises;internal control defect severity directly determines the internal control target to achieve the quality or can be realized;design and implement and maintain effective internal control is achieve internal and external reporting reliability,to make the suitable response to the risk,promote the efficiency and effectiveness of operations and achieve an important cornerstone of the compliance management.According to the essence of internal control defects classification,internal control defects can be divided into design defects and operational defects.Design defect is the lack of the enterprise to achieve the control objectives of the necessary control,or the existing control is not reasonable and failed to meet the control objectives;divided into system defects and manual defects.Run a defect is the design of reasonable and effective internal control,but in the operation has not been properly implemented;including inappropriate personnel to perform,not in the design of the way to run,such as improper frequency,etc..According to the classification of the severity of internal control,internal control defects can be divided into major defects,important defects and general defects.Major defects,also known as the material weakness,is refers to the combination of one or more defects,may seriously affect the overall internal control effectiveness,leading enterprises are unable to timely prevent or to detect significant deviations from the overall control objectives.Important defect refers to the combination of one or more general defects,the severity of lower than major defects,but resulted in enterprises are unable to timely prevent or to detect significant deviations from the overall control objectives of the severity of the still significant,need to cause the attention of management.General defects are other defects that are not important,but important.In this paper,we mainly study the influence of defects in the internal control of the enterprise,as a case study,the analysis of the economic consequences of Hua Ruifeng electric began to disclose internal control self assessment report,and hire accounting firms on the implementation of internal control audit;Sinovel since listing,disclosure of the total 3 copies of internal control self assessment report,relative should be disclosed the three copies of the audit report of internal control.In 3 copies of the internal control self assessment report,in 2013 and 2014,annual discovery in the presence of significant flaws of internal control over financial reporting,but did not find the existence of non-financial reporting internal control deficiencies,2015 self evaluation report were not found in the presence of financial reporting and non-Financial Reporting internal control flaw;in 3 copies of the internal control audit reports,2013 and 2014,by an average annual accounting firm issued negative opinion of the audit report of internal control;2015 were issued with emphasis paragraph no reservations about internal control audit opinion.(2)due to the deterioration of the wind power industry,the overall market environment,Sinovel in public companies operating performance of rapid decline;in the face of the pressure of business performance,Sinovel management layer above on internal control,financial,business and other related personnel to whitewash financial statements directed,forge business profits.(3)China Ruifeng electric internal control on the whole relatively weak,key management personnel frequently change,resulting in the continued deterioration of the business performance and market status of serious decline.(4)Sinovel "clean" internal control disclosure of audit opinion,with the negative reaction of the market,that is,non standard unqualified internal control audit report disclosure,Sinovel secondary market shares to reduce.