Study On The Problem Of Enterprise Internal Control In NEEQ

In recent years,NEEQ,as an emerging capital market,has developed by leaps and bounds.But at the same time,they are also faced with huge management problems.Due to the implementation of record keeping system on NEEQ,the entry threshold is low,and internal control for every enterprise is crucial,if the development of enterprises without good internal control management,will eventually be eliminated.Since China’s state council decided in June 2013 to promote the pilot program of the national SMES share transfer system to the whole country,some NEEQ enterprises have been suspended from stock transfer due to irregularities.In recent years,more and more enterprises have been forced to withdraw from the market due to irregularities,which indicates that NEEQ enterprises need to strengthen their management ability and improve the level of corporate governance by optimizing internal control.This paper adopts the research method of case analysis and selects company Q with a certain reputation in the fertilizer industry and typical internal control problems among the NEEQ listed companies as the research object.Firstly,the five elements of COSO internal control were used to sort out the research results of internal control at home and abroad,study and elaborate the theory of COSO internal control,and summarize the development process of China’s internal control system and norms.Then it explains why the internal control problems of NEEQ enterprises deserve attention from three aspects.First,despite the rapid development of NEEQ,more and more companies are forced to delist due to internal control problems,which has aroused great attention from the state.Second,NEEQ is different from the main board and gem in terms of system emphasis and has its unique capital market position.Third,the new three board market access conditions appears to be easing,but actually,it forward the more stringent requirements on NEEQ enterprises in internal control,the requirements of internal control in the entry conditions are consistent with the requirements of the basic norms of enterprise internal control in China.Even so,many NEEQ companies still have problems in internal control after listing and are forced to delist.Therefore,the internal control of NEEQ enterprises is of research value,and the main problems in the construction of NEEQ enterprises’ internal control are proposed.Then,based on the five elements of COSO internal control,the problems existing in Q company’s internal control were analyzed and classified,the causes of the problems were summarized,and corresponding improvement suggestions were put forward.Finally,the paper summarizes the full text,give some suggestions for improving the internal control of enterprises in NEEQ from five aspects,they are the internal control environment,internal audit,risk management,communication system,supervision.This paper is expected to provide reference for enterprises preparing to be listed on NEEQ and those already successfully listed on NEEQ in improving the existing problems of internal control by combining the difficulties faced by the internal control construction of NEEQ enterprises and the research results of case companies.