A Case Study On The Internal Auditing Governance Of ZGYQ’s Executive Corruption

Since the 19th National Congress of the COMMUNIST Party of China(CPC),significant new results have been achieved in the reform of state-owned enterprises and solid achievements have been made in comprehensively governing the Party with strict discipline.However,the risk of corruption among senior executives leading to the loss of state-owned assets still exists.With the continuous improvement of the anti-corruption mechanism of state-owned enterprises,a large number of corporate executives’ corrupt behaviors have been exposed.Most of them take advantage of the loopholes in the internal audit system to gain illegal profits for themselves by manipulating their power.Once a corruption case occurs,the company will not only suffer incalculable losses at the economic level,but also sometimes damage its brand image,industry image and even the national image.Serious corruption behavior even endangers the company’s survival.If we want to continue to strengthen the innovation and reform of state-owned enterprises,it is very important to strengthen the construction of clean government of state-owned enterprises.Based on the description of anti-corruption methods and systems as well as the operation and role of internal audit in the anti-corruption of senior executives,this paper expounds the operation and financial performance of ZGYQ Company and the whole process of the case of senior executives corruption.Combining the theory of fraud risk factors,GONE theory and principal-agent theory,from the legal person governance structure defects,internal audit supervision and imperfect aspects analyzes the subjective and objective factors of the inquiring corruption produces ZGYQ companies at present.It points out the serious and difficult problems existing in internal audit of ZGYQ company at present and still need to be solved: unclear internal audit system planning,lack of internal audit system,improper application and implementation of internal control elements,and insufficient follow-up rectification.Finally,according to the actual situation of ZGYQ company and under the background of the latest policy of comprehensive coverage of central audit,the problem-oriented "accountability +" internal audit system was proposed.Based on economic responsibility audit,effective measures to solve corruption,such as special audit and internal control audit,were combined to establish an effective anti-corruption supervision and control governance mechanism.