Research On Optimization Of Internal Control Environment Of Geeya Technology Co.,Ltd

As an important means of management of listed companies,internal control plays an important role in preventing risks,preventing fraud,and promote the achievement of strategic goals.As one of the five elements of internal control,the internal control environment has significantly improved its position from the old COSO framework in 1992 to the new COSO framework in 2013.From the bottom of the cube structure to the top,the domestic and international research on the internal control environment is also More and more profound.The management of “people” is the core of enterprise management,and the internal control environment is a system built by human beings.Therefore,the internal control environment plays an important role in the internal control framework.Geeya Technology,which was selected in this article,was once favored by the market at the beginning of the listing,but after the listing,it caused a sharp drop in profits due to the aggressive overseas acquisition plan.In June 2015,the SFC was investigated and prosecuted for suspected financial fraud.In 2016,the company recognized financial fraud and retroactively adjusted nine important financial indicators.In 2018,due to suspected fraudulent issuance,the CSRC transferred Geeya Technology to the public security organs to investigate its criminal responsibility.In a series of cases of fraudulent issuance and financial fraud,Geeya Technology exposed the serious problems of the company's internal control environment construction.At the same time,this series of problems is also outstanding and typical,and can provide similar companies with similar internal control environmental problems.Reference to avoid the failure of the internal control system caused by the defective internal control environment,or the resulting financial fraud problems.Therefore,this paper selects Geeya Technology as the research object.In the theoretical research,this paper starts with the development of internal control,summarizes the five stages of internal control experience at home and abroad,and summarizes the development of internal control environment related theory in the process of internal control theory gradually improving.At the same time,this paper sorts out the research on the concept,status,function and optimization measures of the internal control environment in the academic circles at home and abroad.Under the theoretical support,the financial fraud incidents of Geeya Technology were reviewed and combed,and a complete and clear case background was presented.Based on the theoretical study of Geeya Technology's internal control environment construction system and the status of internal control environment,internal control was found for the status and specific fraud methods.The environmental factors in the organizational structure,development strategy,human resources,social responsibility,corporate culture,serious problems,and finally put forward a targeted solution to the problem,re-establish a sound and accurate internal control environment to promote the internal Control the overall development and prevent the recurrence of vicious financial fraud cases.Through the case analysis of Geeya Technology,this paper finds many loopholes in Geeya Technology's internal control environment.In terms of organizational structure,there is a problem of the lack of personnel in the internal audit department,the lack of timely adjustment of the organizational structure,and the poor adaptability of the organizational structure.In the development strategy,the development strategy cannot adapt to the industry changes,and the development strategy is too radical.The problem of falling profits and failure of marketing strategy;in terms of human resources,there is a problem that the salary system is not sound enough and the personnel of individual institutions are insufficient.At the same time,the company fails to pay attention to social responsibility,the executives are illegal,and no good corporate culture is established.Atmosphere.These problems have led to the failure of internal control of the company,chaotic management of the company,and financial fraud.In view of the above problems,this paper proposes targeted optimization measures,and puts forward the establishment of effective organizational structure and power and responsibility distribution system,improving the rationality of development strategy,establishing scientific and rational human resource policies,raising awareness of social responsibility and strengthening corporate culture.Finally,Through the case analysis of Geeya Technology,the recommendations for other companies' internal control environment optimization measures are summarized.