A Case Analysis of Internal Control of Zhangzidao Group

Ai Deng

doi:10.71204/teh16958

Authors

Ai Deng Beijng City University Author

DOI:

https://doi.org/10.71204/teh16958

Keywords:

Zhangzidao Group, Internal Control, COSO Five Components, Financial Fraud, Biological Assets

Abstract

To identify the inherent operational defects of internal control within the aquaculture industry, this paper takes Zhangzidao Group as the research sample and conducts a comprehensive case analysis under the five-component framework issued by COSO, covering control environment, risk assessment, control activities, information and communication, and internal supervision. The research finds that Zhangzidao suffers from multiple severe internal control flaws: unbalanced corporate governance structure, inadequate identification and evaluation of fraud risks, ineffective control over biological assets, distorted internal information transmission, and nominal internal supervision mechanisms, which together trigger successive financial fraud incidents. Targeted countermeasures are proposed from four dimensions: digital technology empowerment, corporate governance restructuring, diversified risk hedging, and multi-stakeholder supervision. The research conclusions can provide practical references for listed aquaculture firms to improve internal control systems and mitigate financial manipulation risks.

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