Research On Internal Control Of ST Chengxing Based On Negative Internal Control Audit Opinio

In order to strictly regulate the company’s internal control system,the Ministry of Finance has promulgated a related law and regulation since 2008.However,in recent years,the listed company’s financial fraud or huge project losses and other events occur frequently,the reason is closely related to the listed company’s internal control defects.The proportion of self-evaluation of internal control and disclosure of internal control audit report is gradually increasing,but the effectiveness of internal control is decreasing.The number of listed companies issued negative opinions due to major defects in internal control increases rapidly.Some listed companies have been issued negative opinions for many times,but the internal control problem has not been solved.How to improve the effectiveness of the internal control of these listed companies is our concern.Based on this,this paper carries out a series of research.First of all,this paper chooses ST Chengxing,who has been issued negative opinions for two consecutive years,as the case study.The internal control system of ST chengxing is regarded as a complex system with causal relationship,and each subsystem is connected and acted on each other.By collating and analyzing the major defects in the negative opinions issued by Chengxing,this paper analyzes the causes of the major defects of Chengxing from the aspects of equity structure,governance of the board of directors,corporate culture and external supervision,and determines the influencing factors of the effectiveness of internal control of Chengxing Shares by combining the relevant literature on influencing factors of the effectiveness of internal control.Then,combined with the influencing factors,the internal control system of Chengxing Shares is divided into three subsystems: board governance,corporate culture and external supervision,and the causal relationship diagram of the three subsystems is drawn.In order to ensure the accuracy and effectiveness of the model,irrelevant factors and less influential factors are eliminated,while key factors are retained.Finally,the preliminary model of Chengxing internal control system is determined.Then the system dynamics model is constructed by assigning values to each influencing factor,namely variables.Through simulation analysis,it is concluded that the independence of the board of directors,the scale and meeting frequency of the board of supervisors,corporate culture and the perfection of local laws are all positively correlated with the effectiveness of the internal control of ST Chengxing,and the shareholding ratio of directors has little influence on the effectiveness of the internal control of ST Chengxing.Finally,this paper respectively from the system integrity,board of supervisors,corporate culture,external supervision,equity structure several aspects to improve the effectiveness of ST Chengxing internal control suggestions.