Research On The Construction Of Internal Control System Of Z Company From The Perspective Of Financial Audit

China’s economy has gradually maintained a steady and far-reaching development trend in recent years.As an essential part of the national economy and market development,small and medium-sized enterprises steadily moves to specialization,refinement,and innovation.Due to profit maximization,the number of enterprises decreases.And a large number of small and medium-sized enterprises face the plight of loss or are even bankrupt lose their vitality.In addition to the complex and changeable external market environment,the root cause lies in the lack of an effective internal control system,which leads to management failure.How to build a healthy internal control system from the perspective of a financial audit? It can be possible through the effective control of the system,curb fraud,reduce financial risk,improve the competitiveness of enterprises,and achieve sustainable development.Moreover,the establishment and improvement of the internal control system standardize the daily financial management and operation management process of small and medium-sized enterprises.So that small and medium-sized enterprises can create more profits and maintain stable and healthy development.This paper summarizes the relevant theoretical literature at home and abroad about internal control and fraud audits.The study also uses the methods of case analysis,investigation,and summary combined with practical experience.The paper takes the Z environmental quality testing company of small and medium-sized enterprises as the research object.And through the financial audit of Z Company,checking and reporting fraud,and analyzing the causes of the existing problems in the financial department,based on the five elements of the COSO framework of internal control.It also combines with the actual operation and management level of the Z Company.Establishes the internal control system and safety measures for the Z Company to make reasonable use of funds and allocate personnel and standardize the daily workflow of the financial department.It can effectively identify and prevent financial risks,prevent the recurrence of financial fraud from the source,and provide a reference for the construction of internal control system of similar small and medium-sized enterprises in China.The main innovation of this paper includes the introduction of financial audit cases according to the audit background,audit focus,implementation process,audit findings,and audit report sequence.And take the specific financial audit review problems and causes analysis as the premise of building an internal control system,and demonstrate that small and medium-sized enterprises build internal control systems to improve the level of financial management.Based on the background of the emerging industry of third-party environmental quality testing,the research contributes to the better practice of the concept of "green waters and green mountains are golden mountains and silver mountains" Theresearch results not only help Z company improve the efficiency of internal governance,regulate the operation of the power internally,also provide ideas for the construction and improvement of the internal control system of other similar small and medium-sized enterprises.