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Research on the Optimization of Internal Controls in Listed Companies—A Case Study of Company A
- 1 Hebei University of Economics and Business
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Abstract
In the current fierce market competition, if a company wishes to enhance its competitiveness, it must improve the work efficiency of its employees and the quality of its products. Simultaneously, the significance of internal controls lies in ensuring the reliability of financial reports, and the authenticity and accuracy of accounting information. Robust and effective internal controls are vital in preventing financial fraud within companies. This paper selects company A, a company that received an adverse opinion in its 2022 internal audit report, as a case study. By discussing its current state of internal controls and analyzing the issues in the five elements of internal control, which include (1) a weak internal environment, (2) poor risk assessment capabilities, (3) lack of control activities, (4) delayed information and communication, and (5) ineffective internal monitoring. Based on the issues identified in the case study, this paper proposes recommendations for improving internal controls in listed companies, aiming to provide references for business development.
Keywords
internal control, related party transactions, improvement suggestions
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Cite this article
Liu,Q. (2024). Research on the Optimization of Internal Controls in Listed Companies—A Case Study of Company A. Journal of Applied Economics and Policy Studies,5,40-45.
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Journal：Journal of Applied Economics and Policy Studies
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