| dc.description.abstract | In recent years, there are company financial crises, depletion of funds, and filing for reorganization happening worldwide, which lead to the questioning of accounting audit failure by investors. Therefore, the government in Taiwan puts emphasis on the company internal audit system once again and requires the internal audit system implementation to be enhanced, in order that corporate fraud events can be completely prevented. As a matter of fact, the internal audit system exists to ensure the normal business goals to be achieved, the accuracy of financial statements, and the compliance of related laws, so the person in charge of the internal audit system implementation, that is the supervisor, should be familiar with corporate operation and be ethically aware. On the other hand, an independent director and a supervisor (a supervisory board) are usually external parties with great reputation. However, their understanding to the company is not as good as that of the internal employees, which is why the professional internal auditors are needed to perform internal control review. Competent authorities regulate that both with/without material weaknesses in internal control and with/without an internal audit unit are important conditions for a company to meet TWSE/GTSM listing rules, when it files for becoming a TWSE/GTSM listed company, and that the internal audit unit be elevated to be governed by its director board.
This research has been conducted by case study method. The case company, B company, is the 4th largest polarizer manufacturer globally. The B company high-ranked executives continued to drive company reform, bring changes to the internal control system, and implement internal audit after company fraud had happened. Eventually, it was listed at the end of November, 2010. This result indicates the importance of the design and revisions of an internal control system. Consequently, the research selects the case company to conduct a further analysis.
The research aims to elaborate the importance and functions of internal control system, which is anti-fraud, beneficial, and risk-preventing. As a result, the research observes that successful enterprises take perspectives of internal control environment, risk assessment, control operation, information and communication, governance when establishing internal control system. Through the research of the above perspectives and the internal control system of the case company, the research intends to:
Provide a reference for enterprises to set up an effective internal control system in the future.
Suggest some possible weaknesses in design and implementation of an existing internal control system, and how to revise the system.
Propose solutions and references to relative problems of internal control and internal audit.
Inspire the competent authorities of corporate governance. | en_US |