Research On Optimization Of Internal Control In G Company’s Production Process

In 2001,one of the largest energy companies in United States collapsed due to financial fraud,which damaged investor’s confidence.Then in 2002,a series of corporate financial fraud incidents represented by World Com sharpened the instability of capital market in United States.In order to reverse the situation,US President Bush signed "Sarbanes-Oxley Act",which full name is the "Public Company Accounting Reform and Investor Protection Act of 2002".This is an important law involving securities market supervision,corporate governance,accounting and auditing reforms.All companies listed in the United States,and companies registered in United States and listed in foreign countries,must comply with the Act.This paper takes G company,a subsidiary of an American listed company,as the research object,and discusses and researches the internal control system.Based on the theory of COSO five elements,it researched the overall status of the company’s internal control by using research methods such as case analysis,literature analysis,interviews etc.This paper analyzed the status of the internal control of G company’s production cycle and conducted a specific analysis of the existing problems and propose an optimization scheme.Through the research in this paper,I hope to provide a certain reference in theory for the internal control of the production cycle in a Chinese entity listed United States.