Research On Internal Control Optimization Of Pharmaceutical Listed Enterprise

The financial fraud case of Kangmei Pharmaceutical Company in 2018 was defined by China Securities Regulatory Commission as "the premeditated,organized,long-term and systematic financial fraud,and malicious deception of investors."There are four main reasons accounting for it.Firstly,Kangmei Pharmaceutical Company inflated profits by means of using imitated and altered value added tax invoice etc.Secondly.it watered monetary capital by many fraud means,for example,imitating and altering bank statements of saving account.Thirdly,it consolidated engineering projects that did not meet the accounting recognition and measurement conditions into the financial statements.Forth,it.made financial fraud by many means of counterfeiting,for example,inflating fixed assets.Compared with financial fraud cases of many listed companies in recent years,the fraud means of Kangmei Pharmaceutical Company were not clever.However,in contrast,Zhengzhongzhujiang,the auditing firm which has cooperated with it for many years did not find any abnormal problems and confirmed the effectiveness of the comments to its internal control system.Similarly,recently Changchun Changsheng false vaccine incident.made the public query the internal control management of listed pharmaceutical enterprises.But the internal control system is the core system of enterprise self-management and self-examination.The occurrence of financial fraud is bound to accompany the internal control system in the formulation or operation of defects.So it s necessary to strengthen the internal control system Through the study of this paper,it is helpful to improve and optimize the internal control system of listed pharmaceutical enterprises and improve the operation effect of internal control in enterprises so that the internal control system can supervise the enterprise better and guard against management loopholes.The paper is divided into six part.s.The first part is the introduction,which mainly introduces the research background and significance,research status at home and abroad and research methods.The second part.mainly introduces the theoretical system of internal control and the correlation between internal control theory and financial fraud theory.The main innovation points are two points:new perspective,internal control analysis based on the perspective of the pharmaceutical industry;new case.combined with the latest financial fraud cases of Kangmei pharmaceutical industry.The third part is the internal control analysis of the pharmaceutical industry.It mainly introduces the characteristics of the capital structure of the pharmaceutical industry and the financial fraud means in recent years in the pharmaceutical industry,and according to this analysis,deduce the main risk points in the internal control system of the pharmaceutical industry,which is the authenticity risk of main business,assets and expenses and the abuse risk of financial appropriation The fourth part is the case analysis part,which mainly introduces the beginning and end of the financial fraud case of Kangmei Pharmaceutical Company,and then analyzes the main loopholes of its internal control and gives suggestions on prevention.The fifth part includes the conclusion and the outlook,which mainly summarizes the loopholes and remedial measures in the internal control of the pharmaceutical industry.The sixth is the outlook part introduces the limitation of this paper and the expectation of future research direction.This paper adopts literature analysis method,case analysis method,data analysis method and other analysis methods,and in terms of the financial fraud incident of Kangmei Pharmaceutical Company,analyses five elements of its internal control,after thoroughly combing the internal control theory system,find out risks of internal control and gives the suggestions on improvement of internal control.The paper aims at helping pharmaceutical enterprises improve the timeliness and the effectiveness of internal audit work,improving the internal control system of them and offering experience of internal control to pharmaceutical enterprises which have been listed companies for reference.