What are the hazards of internal control failure and the factors that affect the effective implement

This one of mine should be new.

1. The manifestations and hazards of the failure of the enterprise's internal control.

1) Control environment failure.

The internal control environment refers to the atmosphere or atmosphere of an enterprise, which directly affects the control awareness of the employees of the enterprise and is the basis of all other elements of internal control. The failure of the control environment will directly affect the implementation of the internal control system of the enterprise group and the effect of its implementation; and affect the role of other control elements. The failure of the control environment is mainly manifested as:

ambiguous property rights between the group and its affiliated enterprises, as well as between enterprises; The organizational structure is not perfect, the rights and responsibilities are unclear, and the responsibilities are unclear; Distorted values, lack of professionalism and management ability of enterprise managers; lack of transparency in personnel policies; Lack of strict rules and regulations that cannot be followed, or failure to strictly enforce rules and regulations, and failure to comply with the law; Poor information communication channels, lack of proper information generation and transmission systems, and separate policies make it difficult to implement various government decrees.

2) Failure of the accounting system.

An accounting system is a method and record established by an enterprise to summarize, classify, analyze, record, and report corporate transactions, and to maintain fiduciary economic responsibility for related assets and liabilities. Enterprise groups should attach importance to financial accounting, legally establish and effectively use accounting information systems, and let relevant departments and personnel know their roles and responsibilities in relevant internal control. Internal accounting control is a very important management tool, and the failure of the accounting system is mainly manifested in:

The enterprise group lacks a proper restraint mechanism for the accounting of its internal member enterprises, and the accounting treatment is untrue and falsified, resulting in distorted accounting information, false income, and improper expenditure; The use of enterprise funds is inefficient, and the loss and waste are serious; weak accounting oversight; The safety and integrity of the company's property and materials are affected; There is a lack of proper macro restraint mechanisms and regulatory means in the raising, investment, and distribution of funds.

c) Failure of control procedures.

Control procedures are policies and procedures established to ensure the implementation of management instructions and the realization of business objectives, and are necessary actions to be taken in response to risks. The main manifestations of the failure of the control program are: the poor operation of various economic activities, the disconnection between purchase, sales, storage or supply, production and sales; The formulation, implementation, and analysis of the budget cannot coordinate and restrain each other; The authorization, hosting, approval, execution, recording and review of economic activities cannot be reasonably divided according to procedures, and the responsibilities are unclear and mutually reinforcing; The management is chaotic, the various monitoring systems are in vain, and the information feedback channels are not smooth.

Internal controls fail, and U.S.-listed companies are delisted.

In the past few years, the crisis of confidence that has erupted in the United States has stemmed from the failure of internal control of some companies, the falsification of financial data, and the infringement of shareholders' rights and interests.

This is going to be a long story, and I suggest you look up the origin of the Sarbanes-Oxley Act.

Failure of internal controls"!It covers a wide area. The failure of management control will lead to: quality decline, high manufacturing costs, large personnel turnover, high customer complaints, mixed people, etc.

Direct or indirect sexual disobedience.

The factors that affect the effective implementation of an enterprise's internal control are as follows:

1. The impact of the internal control environment on the implementation;

2. The impact of enterprise resources on implementation;

3. Internal control system.

its own impact on execution.

Internal control is a general term for a series of methods, means and measures adopted by a unit to self-adjust, restrict, plan, evaluate and control the system in order to achieve its business objectives, protect the safety and integrity of assets, ensure the correctness and reliability of accounting information, ensure the implementation of business policies, and ensure the economy, efficiency and effectiveness of business activities. Internal control plays a role in regulating and guiding the development process of an enterprise.

The role of internal control in enterprise management is as follows:

1. The most important role of internal control is to clarify the responsibilities of enterprise departments, and at the same time, under the management of internal control, enterprise departments and employees can complete their tasks more efficiently and improve the overall efficiency of the enterprise;

2. Standardized internal control is very beneficial to the healthy development of the enterprise;

3. Avoiding enterprise risks and strengthening the internal control of enterprises is not only an internal requirement of enterprises, but also an important means to ensure that enterprises can effectively avoid risks;

4. Standardize the accounting work of enterprises to strengthen the study of internal control of enterprises, which can start from the accounting work of enterprises, and the standardized accounting system can help enterprises to do a good job in accounting, so that accounting personnel can work in a down-to-earth manner under the regulations, and make accounting information more accurate and credible.

There are five principles of internal control:

1. The principle of comprehensiveness of the forest cover, internal control should run through the whole process of decision-making, implementation and supervision, covering various businesses and matters, and realizing economic activities.

total control;

2. The principle of materiality, internal control should be based on comprehensive control, focusing on important economic activities and major risks of economic activities;

3. The principle of checks and balances, the internal control of an enterprise should be in the corporate governance structure, institutional setting, distribution of rights and responsibilities, and business processes.

and other aspects to form mutual constraints and supervision, while taking into account operational efficiency;

4. The principle of adaptability, the internal control of the enterprise should be related to the scale of the enterprise's operation.

Adapt the business scope, competitive situation and risk level, etc., and adjust them in a timely manner as the situation changes;

5. The principle of cost-effectiveness is the first of spring, and the internal control of the enterprise should weigh the implementation cost and the expected benefits, and achieve effective control at an appropriate cost.

(1) There is a conflict between the owner of the enterprise and the producer and operator, resulting in ineffective internal control.

2) The internal control system of the enterprise is unreasonable.

3) The internal control system of the enterprise is not perfect, and the implementation is not in place.

Fourth), the quality of accounting personnel is low.

5) Lack of effective supervision.

6) The quality of the executors of the internal control of the enterprise is not high, which makes it uncoordinated with the requirements of internal control.

To give you two pieces of literature:

The internal control of an enterprise refers to the order of an enterprise to ensure the effectiveness of its business.