Research On Internal Control Defects Of M Company

With the increasingly complex market economy,due to internal control deficiencies,corporate fraud occurs frequently,which has a serious adverse impact on China's economic and market environment.In view of this situation,China has promulgated a series of laws and regulations to regulate the internal control system of companies,and requires listed companies to disclose their own internal control self-evaluation reports and internal control audit reports under the requirements of internal control standards,and to withstand the supervision of the public and the market.However,with the rapid development of China's economy and the deepening of the process of global integration,the defects of internal control of Listed Companies in China are gradually revealed while meeting the challenges.Therefore,the construction of a standardized internal control system of listed companies has become an urgent problem to be solved.In this paper,the internal control of M company is deeply studied by using the theory of internal control defects.Through understanding the internal control situation at company level and business level of M company,we can detect the defects and their causes,and find that the defects may not only be caused by an internal control problem,but also by the aggregation of defects caused by various control problems.The research finds that the internal control of M company has defects in the control environment,risk assessment,control activities,information and communication,and supervision,which are mainly manifested in the following aspects:design defects in the internal control environment;design rights and operation defects in the risk assessment;design rights and operation defects in the internal control activities;and design rights and operation defects in the internal control activities.Defects;operational deficiencies in information communication and disclosure;operational deficiencies in internal supervision.According to the above conclusions,the reasons for its existence are as follows:weak internal control consciousness of company management and related personnel,lack of independence of internal audit organization.lack of perfect risk early warning mechanism.lack of effective information communication mechanism,weak professional quality of internal auditors,etc.Based on these reasons,this paper proposes to strengthen the awareness of internal control,improve the independence of internal audit institutions,establish and improve the risk early warning system,improve the information communication system,improve the professional quality of internal auditors and other countermeasures to improve the status of internal control,and then consolidate the company's management and control capabilities,help.Help them to enhance the effectiveness of internal control and optimize the company's future management.