Liu Weijie, the national managing partner of Deloitte China Enterprise Risk Management Service Group, said: "The basic norms aim to enhance the risk prevention ability of China enterprises. However, many enterprises find it difficult to implement basic specifications due to the lack of application guidelines. The newly promulgated guidelines cover all aspects of enterprise management and provide clearer guidance for China enterprises to improve their management level and risk prevention ability. "
Deloitte China Corporate Governance Center conducted a survey on about 100 listed companies in China in February and March of 20 10. It shows that 84% of listed companies think that strengthening and perfecting internal control procedures is the best way to improve corporate governance. Liu Weijie said that corporate governance is increasingly becoming an important issue for enterprises in the context of increasing domestic and foreign investment in China. Effective internal control is helpful to improve the quality and reliability of the company's financial information, which is an important basis for the decision-making of capital market participants.
Angelababy, a partner of Deloitte China Enterprise Risk Management Services, told Netease Finance that laws and regulations in most countries require all enterprises to comply with corresponding financial reporting standards. Therefore, one of the main risks faced by enterprises is the serious consequences caused by violating the standards. "The application of standards will promote enterprises to abide by these laws, regulations and standards, and effective internal control can improve the reliability of enterprise financial information."
"In addition, financial statements may also be affected by commercial fraud risks, including corporate management deliberately falsifying financial information or manipulating financial data. Effective internal control can promote enterprises to comply with the relevant standards of financial reporting, so it can effectively reduce the risk of corporate fraud. " She said.
Financial fraud of listed companies cannot be completely eliminated.
Because many listed companies in China are often accused of financial fraud, even some newly listed companies are accused of false statements in their prospectus during IPO. Netease Finance asked whether the financial fraud of listed companies can be completely eliminated after the promulgation of the internal guidelines of the five ministries and commissions. Angelababy's answer was no.
She believes that any laws and regulations will involve the effectiveness of implementation. The financial legal system in the United States is very perfect, but financial fraud incidents of large enterprises such as Enron and WorldCom still break out from time to time. Secondly, enterprise internal control is only a part of corporate governance, and internal control has corresponding requirements for management, board of directors and board of supervisors. However, if insiders collude, the internal control system will fail, which is why some enterprise systems and actual implementation are "two skins"; Finally, the internal control system is binding on every level of the enterprise, but if the management of the enterprise is above the system and takes the supervisory institutions such as the board of supervisors and the internal audit Committee as furnishings, the internal control guidelines will only be written on paper.