What types of internal control defects include?

Internal control defects include major defects, important defects and general defects.

1. major defects: major defects refer to defects that are so serious that the equipment cannot continue to operate safely and may cause accidents or endanger personal safety at any time.

2. Important defects: Important defects refer to the combination of one or more control defects, which may cause the enterprise to seriously deviate from the control objectives.

3. General defects: internal control defects in financial reports that do not constitute major defects and important defects should be identified as general defects.

Introduction of internal control defects

Internal control defect refers to the design and operation of the company's internal control, which can not reasonably guarantee the realization of internal control objectives. Among them, operational defects refer to the reasonable and effective internal control, but it has not been correctly implemented in the operation. Including improper personnel execution, not running in the designed way, improper frequency, etc. For example, "the amount of material procurement application has exceeded its procurement authority, but it has not applied to the superior company for arranging bulk material procurement" (there are authority management regulations, but they have not been properly implemented in actual operation).