Research On Internal Control Defects Of The Break Of Capital Chain In LETV Company

The management concept of Chinese enterprises has been constantly updated and the management mechanism has been continuously improved.Managers gradually realize that the existence of internal control defects makes the development path difficult,and the danger is serious,resulting in serious economic consequences.The capital chain is like blood,which is the foundation and foundation of each enterprise in the economy and society.If the capital chain of the enterprise is broken,the light is harmful to the normal operation of the enterprise,and it will bring the financial crisis to the enterprise.With the new normal of economic development,China’s cultural media industry is flourishing,the trend of the integration of the three networks is full,and the video industry is gradually accelerating the pace of development.Music vision is the first IPO listed company in the industry,and it is China’s video leading enterprise.However,the company’s fund chain fracture since 2016 has attracted the attention of all walks of life.This paper through analysis of the direct cause of music as the company’s capital chain rupture,the root cause defect of the internal control research,put forward to optimize the internal control of the targeted countermeasures to explore the problems in order for the music company to carry out internal control improvement work of reference.This method adopts the literature research method and research method of combining,LETV by querying the company over the years of financial statements,read the internal control self assessment report and analysis of internal control audit report and use a database to obtain support of memtech,data and indicators.Based on introducing the theory of internal control and the basic theory of capital circulation,a brief overview of the music company and its internal control implementation work,combined with the public information research process to get to the analysis of the direct reason that funding strand breaks for a high level of debt,poor profitability,poor management mechanism,strategy too radical,summary it is concluded that the defects of internal control of capital chain rupture should be further improved,in order to control the environmental risk assessment to identify risk,control activities,information exchange and the defects existing in the environment of poor communication and supervision work is not implemented,according to the company LETV recommendations are: improve the internal control environment,including restrictions on actual control rights and establish management system operation guide and to establish the budget management and evaluation departments,improve enterprise risk preventionConsciousness;strengthen risk assessment work,including the establishment and formation of the risk management team,establish subsystem risk isolation mechanism,focus on risk prevention and risk assessment of the weak links on the whole and prospective risk management department;rich business control activities,including widening financing channels,rational treatment of equity pledge,strengthen the transaction to improve internal control;the information communication efficiency,including internal and external information exchange channels and clear enterprise;implement supervision of internal and external,including improving the competence,strengthen the sense of responsibility of internal supervision personnel.