INTERNAL CONTROL AND FINANCIAL RISK OF LISTED COMPANIES ON SME BOARD IN CHINA

Abstract

Since the reform, small and medium-sized listed companies have become important to China's non-public economy. With the growing number of listed companies on the SME BOARD, more and more problems have emerged in these companies' operations, especially internal control problems. Internal control defects also increase the financial risks of these listed companies. How to prevent financial risks is a big obstacle blocking these companies' development. In view of this, for the problems of small and medium-sized listed companies, it is necessary to conduct in-depth research and put forward corresponding countermeasures for risk prevention. Based on the perspective of internal control, this paper discusses how to prevent the financial risks of these listed companies from the improvement of internal control through the design and implementation of internal control deficiencies of the listed companies in the SME Board, to benefit the financial risk prevention of the listed companies in the SME Board in China.