Research On Internal Control Of Guarantee Business Of *ST Hareon

In recent years,the guarantee business of listed companies in China has developed quickly.Proper guarantee business can promote the financing among credit transaction subjects,and realize the win-win situation between listed companies and partners.Conversely,improper guarantees will damage a company's reputation and put it in financial troubles.It is of great significance to perfect the internal control system for listed companies to properly carry out guarantee business and prevent the risk of guarantee business.However,due to some of the listed company guarantee business internal control system defects in the design and implementation,excessive guarantee,malicious associated guarantee,violate compasses guarantee,and even false assurance and other inappropriate behavior emerge in endlessly,which not only bring the listed companies themselves a larger financial risk,and also to some extent hinder the sustainable and healthy development of securities market.In order to strengthen the management of guarantee business of listed companies and prevent the risks of guarantee business,our country has issued a series of laws and regulations related to the internal control of guarantee business.But those measures have not stopped listed companies from implementing inappropriate guarantee business.Some listed companies are still mired in the risk of guarantee business.Therefore,it is not enough to only rely on legal constraints to prevent the risk of guarantee business of listed companies.It is also necessary for listed companies to give play to their subjective initiative,establish and improve the internal control system of guarantee business of the company,strengthen the supervision and control of guarantee business of the company,and prevent the risk of guarantee business from the root.This paper adopts the method of case study and applies asymmetric information theory,internal control theory,enterprise risk management theory,to study the status quo of internal control of *ST Hareon guarantee business.Through the research,we can found that *ST Hareon has problems in the internal control design of guarantee business,such as unclear supervision and inspection provisions of guarantee business,less content involved in counter-guarantee business,etc.In the implementation,there are mainly problems such asinternal oversight is not in place,incomplete risk control of guarantee business and delayed disclosure of guarantee information.Then,this paper analyzes the causes of the defects in the internal control of *ST Hareon guarantee business,and finds that senior management changes frequently,the internal control awareness of the guarantee business is weak,the information communication is not smooth,and the audit committee is not in duty,which are the main reasons for the failure of internal control of *ST Hareon guarantee business.Finally,combining with the causes of the failure of the internal control of *ST Hareon guarantee industry,this paper puts forward Suggestions to improve the internal control of *ST Hareon guarantee business from the two aspects of design and execution.From the design perspective,*ST Hareon guarantee business should make clear the relevant regulations on supervision and inspection of guarantee business and improve the relevant regulations on counter-guarantee business.From the perspective of execution,*ST Hareon should strengthen internal oversight and the awareness of risk prevention of guarantee business and improve the transmission and disclosure mechanism of guarantee information,so as to provide guarantee for the effective operation of internal control of guarantee business of listed companies.It is hoped that the research on the internal control of *ST Hareon guarantee business can provide reference for*ST Hareon and other listed companies to improve their own internal control system of guarantee business.