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Listed companies; Internal control; suggestion
Internal control refers to the mutually restrictive business organization form and division of responsibilities system established by economic units and organizations in economic activities. The purpose of internal control is to improve management level and economic benefits. Enterprise internal control is a management standard based on professional management system, aiming at risk prevention and effective supervision, by establishing a process control system in an all-round way, describing key control points, and intuitively expressing the business process of production and operation in the form of flow.
First, China's listed companies internal control management problems
As a public enterprise, listed companies bear the expectation of shareholders' wealth appreciation and bear numerous social responsibilities. In addition, with the regulatory requirements for information transparency and the enhancement of market binding force, enterprises are facing more management priorities and difficulties. In recent years, listed companies in China have made positive progress in the implementation and evaluation of internal control system. For example, most listed companies pay more attention to internal control and risk management in the financial crisis situation, and organize and sort out internal control and strengthen management in a targeted manner; The understanding of enterprise risk prevention is further deepened; More and more listed companies begin to compile and disclose internal control evaluation reports to promote the idea and system of internal control to be deeply rooted in the hearts of the people. However, as far as the present situation of internal control management of listed companies in China is concerned, the following problems generally exist:
(A) the internal control environment is not perfect
Among the five elements of enterprise internal control, the internal environment is the basis of enterprise internal control, and a good internal environment plays a very important role in the effective implementation of internal control. At present, China's listed companies have set up shareholders' meetings, boards of directors, supervisory committees and some special committees according to the Company Law and the Securities Law, and formulated corresponding procedures. However, due to the high concentration of equity and the absence of state-owned assets owners, insider control is widespread, which weakens the supervisory role of the board of directors and the board of supervisors and makes the corporate governance structure unreasonable. In addition, the defects in enterprise organizational structure, enterprise culture and human resources policy are not conducive to the function of internal control.
(B) a weak sense of risk
At present, most listed companies in China have low management level, low risk awareness and imperfect risk management mechanism. Mainly manifested in: lack of scientific and effective risk assessment mechanism, backward risk control means, most enterprises' internal control focuses on intermediate and post-event control, but less on pre-event prediction and control of risks. With the development of China's economy, the competition among companies is becoming more and more fierce, and companies will face greater environmental changes and survival risks. However, judging from the current situation of listed companies in China, there is a general phenomenon of insufficient understanding of the situation and market, overconfidence and optimism, and of course blind expansion. Their risk awareness has not been improved to its due height, and there is no effective mechanism to identify, analyze and manage risks, which leads to poor adaptability and anti-risk ability of many listed companies.
(C) lack of effective communication, poor information
At present, most listed companies in China have more or less poor information communication within the company and with the regulatory authorities. Specifically, in the up-and-down communication of information, there are widespread phenomena such as slow information transmission process, information distortion and even loss when transmitting layer by layer; Moreover, due to the imperfect information feedback mechanism, upward communication is blocked, which makes the upper managers unable to obtain first-hand information quickly; Due to the untimely downward communication, the latest information of top decision makers and managers was not delivered to every employee in time, and the company's decisions were not implemented in time.
(D) the supervision mechanism is not perfect
At the current stage of economic development, most listed companies in China have not really established supervision departments, and the board of supervisors in listed companies has not played its due role. Most of the members of the board of supervisors of listed companies fail to meet the professional quality and professional quality requirements, and even some members of the board of supervisors are dominated by the management of the company, which fundamentally limits their role. Some listed companies only let the internal audit department act as the board of supervisors, and the supervisory role is minimal.
Second, suggestions and thoughts on strengthening the internal control management of listed companies in China
(1) Establish an effective corporate governance structure and form clear rights checks and balances.
First, improve the system of checks and balances of "three powers" and clarify the powers of shareholders' meeting, board of directors and board of supervisors; The second is to effectively guarantee the separation of the two powers. China's laws should strictly limit the overlap between the board of directors and managers, and the overlapping ratio should be limited to a certain proportion, and the construction of the board of directors should be strengthened at the same time; The third is to strengthen the role of the board of directors in the internal control system.
(B) to strengthen risk management
Strengthening risk management is an important content of modern enterprise internal control. For listed companies, risk management is more important because of the separation of ownership and management rights and the high concentration of equity. First of all, all employees of listed companies should establish a sense of risk. Only when we are aware of the risks will we actively strengthen internal control and take measures to control the risks. Secondly, listed companies should strengthen risk management, establish and improve risk prediction, risk assessment, risk control and risk restraint mechanisms, and technically formulate risk avoidance, risk transfer and risk decentralization management strategies to effectively prevent and control risks. At the same time, it is necessary to evaluate the current situation and risks of enterprises reasonably and objectively. Listed companies should pay more attention to the construction and updating of internal control guidelines in order to correctly grasp the policy requirements and reduce unnecessary costs. At the same time, it is necessary to establish an internal supervision organization to regularly check the high-risk areas of enterprises and find existing or potential risks in time.
(C) improve the information communication system
1. Government departments should actively establish and improve the guidelines and guidelines for mandatory disclosure of internal control information in the form of systems, standardize the content and format of internal control information disclosure of listed companies, clarify who is responsible for internal control information, and introduce corresponding punishment measures.
2. Enterprises should also establish a complete internal control system and clear business processes, reasonably divide responsibilities, control and assess all functional departments and personnel of the company, clarify the responsibilities and interests of each department, prevent power overlap and avoid power vacuum. Through the preparation of internal management system, business flow chart, authority guidance, etc. To promote employees at all levels of the enterprise to clearly define organizational setup and division of responsibilities and correctly exercise their functions and powers. Smooth information feedback channels to ensure that problems encountered by employees can be reported and solved in time.
Increase the punishment for listed companies to create false accounting information.
Enterprises should increase the cost of manufacturing false accounting information, and the state should increase the punishment for accounting firms, so that certified public accountants can practice more cautiously and maintain the standardization and independence of their practice.