Research On Internal Control Auditing Of Chinese Family Business

Family enterprises are the main force of China’s private economy.As an important part of China’s economy,private enterprises are regarded as the pillar industry of our country’s private economy.On the one hand,from the perspective of quantity,family enterprises occupy the largest proportion among all types of enterprises.On the other hand,in terms of solving the employment problem,family enterprises provide a large number of employment opportunities and make immeasurable contributions to promoting economic progress and national development.In recent years,there have been frequent financial frauds of family enterprises in China this year,which not only damages the economic interests of family enterprises and hinders their long-term development,but also produces many negative effects on the overall stable and healthy development of China’s economy.However,the imperfect and ineffective internal control system of the enterprise is believed to create external opportunities for most financial frauds,so the internal control of the family business begins to be taken seriously.Sarbanes act of the United States made clear provisions on internal control audit in 2002,requiring listed companies to hire certified public accountants to audit the company’s internal control and issue internal control audit reports.China’s regulations on this aspect started from the 2010 code for internal control of enterprises,which also stipulates the internal control and audit system of enterprises.Compared to the financial statements auditing,internal control auditing as a new authentication services,effectiveness is related to financial reporting internal control audit,to ensure the authenticity of enterprise relevant financial information and the high proportion of our family enterprise financial fraud,allow the public to doubt the result of the internal control audit report.As China’s internal control audit system started late,it has not formed a set of very mature and complete internal control audit system,including the contents from the audit process to audit methods,which need to be further improved.This paper first introduces the research and significance of Beijing,then introduces the concept of family business and back control audit and relevant theoretical knowledge.Then,starting from the domestic and foreign research on internal control audit,taking family enterprises as the research object,this paper introduces the development status of internal control audit of family enterprises at home and abroad.Several cases of internal control audit of family enterprises in China are selected for analysis,and the types of audit opinions and influencing factors of these cases are analyzed.On this basis,to analyze the quality of the audit results of midea group’s internal control audit,find out the problems in its internal control audit work,and analyze the reasons.Under the current macro-environment of China’s economic restructuring,many enterprises have fallen into a development bottleneck.And family business as a contribution in the our country economy and its powerful part of a need to ensure the effective realization of the goal enterprise organization,run obey the laws and regulations and related policies,procedures,rules,can the organization for economic and efficient use of resources,to ensure that the quality of information,at the same time also need to effectively protect the enterprise resources,to achieve these goals requires the enterprise to establish and perfect the internal control system.The goal of internal control audit is to check and evaluate the legitimacy,adequacy,effectiveness and suitability of internal control.As there are many problems in the internal control audit of family enterprises in China,this paper puts forward Suggestions from the perspectives of family enterprises themselves,independent external third-party audit institutions and regulatory departments,so as to provide references for the improvement of the internal control audit of family enterprises in China in the future.