Major Shareholder Control, External Supervision And Internal Control Defects

With the continuous development of economic globalization,the various production and production activities of modern enterprises are becoming more and more complex.Therefore,the importance of internal control in enterprise management is becoming more and more prominent.It not only measures the management level of modern enterprises,but also The sustainable development of an enterprise has an absolute guarantee.Long-lived organisms broke out inferior vaccines in July 2018.The company has a private listed company with more than 20 years of experience in the vaccine industry.After the inferior vaccine incident broke out,the Shenzhen Stock Exchange strongly condemned the existence of significant internal control of longevity organisms.Defects,as well as the vaccine events of longevity organisms,give us a deep understanding of the importance of internal control.Long-lived organisms have always existed as star companies before the vaccine incident.Whether it is from the internal control reports issued by the company's internal supervisory agencies or the internal control audit reports disclosed by the external auditors,it is a worthwhile.A good company that investors trust.However,with the occurrence of vaccine incidents,media and government supervision and follow-up reports have made us realize that the internal supervision mechanism and external audit supervision mechanism of long-lived organisms are in a state of failure.Therefore,this paper adopts the case study method,combined with the basic theory of internal control of Chinese enterprises and the related theory of equity concentration,to study the mechanism of longevity organisms leading to internal control defects under the control of large shareholders,and external in the event of longevity biological vaccine.The role of the supervisory mechanism.The study found that when a listed company is controlled by a major shareholder,the major shareholder can override the internal control of the enterprise by controlling the candidates of the board of directors,the board of supervisors,and the audit committee,resulting in the inability of the company to identify the major defects of internal control.,disclosure and rectification.At the same time,under the control of the majority shareholder,it also has a certain impact on the independence of the auditor,which leads to the oversight of the external audit.In this case,the existence of government supervision and media supervision can make up for the failure of internal supervision.And the failure of external auditors to monitor and disclose significant defects in internal control of the company.The study believes that listed companies should pay attention to the implementation of their own shareholding structure and internal control system.Government regulators should strengthen the intensity and methods of relevant supervision,and strengthen the management of the audit market and media supervision.The research in this paper has certain theoretical and practical significance,enriches the relevant literature of internal control,and also provides a certain theoretical reference for government agencies and media organizations.