Research On The Effectiveness Of Internal Control Of Listed Dairy Companies

In the rapid development of China’s listed companies at the same time,is facing the unprecedented pressure of competition.In the face of great competitive pressure,internal control failures and financial frauds occur frequently in listed companies,so regulating the internal control of listed companies has become an urgent problem to be solved.The case of Huishan dairy’s internal control failure,which has been exposed by muddy waters recently,makes people more aware of the importance of internal control.In order to regulate the internal controls of the public corporation,the country has been able to regulate and implement surveillance,and it has issued a series of regulations on internal control of the public corporation,like the Treasury Department in 2008 and the basic norms of internal control.With the increasing demand for dairy products,the quality and safety of dairy products is attracting more and more attention from the whole society.However,a series of dairy safety incidents in the last few years has sparked a panic,and people have begun to question whether our dairy products are safe,and even have triggered a "outsourcing",which has made the country’s dairy industry a serious threat.In addition to the fact that the dairy industry is aware of the crisis,it’s also a big concern for academia.However,the focus of the academic circle tends to focus on the reasons for the occurrence of dairy safety incidents and the research on the industry performance,and the lack of research results on the internal control of dairy products listed companies.Therefore,this paper chooses the internal control of dairy products listed company as the research topic,which can enrich the research results of this aspect and provide reference for regulating the internal control of dairy products listed companies.This paper takes dairy listed companies as the research object,first studies the status quo of internal control of dairy products listed companies,and measures and ranks the internal control effectiveness of dairy products listed companies,and finds out the main problems in the internal control of dairy companies.Then take Huishan dairy as anexample to further analyze the problems of the internal control of Huishan dairy industry.Finally combining dairy problems existing in the internal control of listed companies,from the Angle of the five elements of internal control Suggestions for the improvement of the dairy industry listed company internal control effectiveness.In this paper,the study found that: the decline in dairy products listed company governance structure found in the internal control level,equity concentration,lack of social responsibility idea,internal decline in levels of disclosure and risk assessment system is not perfect,the problem such as internal supervision work is not positive,so there is a big upside internal control effectiveness.By analyzing the case of the Huishan dairy industry,we found that the main problem with the internal control of the firm is that the stock is too concentrated,the internal oversight fails,and the public disclosure is distorted,and the internal controls are not established,the risk assessment and the information are not in time.In response to these questions,this article thinks that we should improve the effectiveness of our domestic dairy products by optimizing the internal control environment,perfecting the risk assessment system,perfecting the control activities,perfecting the information,and enhancing the internal supervision and so on.