Internal Control Effectiveness and Optimization of Fast-Moving Consumer Goods Listed Companies: A Case Study of Bai Run Co., Ltd. Based on the COSO Framework

Abstract

Internal control serves as the cornerstone mechanism for enterprises to mitigate risks, ensure compliance, and drive value growth. This study examines Bai Run Co., Ltd. (SZSE Main Board, Code: 002568), a leading domestic pre-mixed cocktail manufacturer, using the COSO Five Elements framework to systematically analyze its internal control system's organizational structure and institutional foundations. Through case studies in four key areas—inventory management, related-party transactions, fundraising, and subsidiary governance—the research evaluates implementation pathways and effectiveness. Findings indicate that Bai Run's internal control system achieved 100% coverage of core subsidiaries, driving revenue growth from RMB 1.927 billion to RMB 3.048 billion and net profit from RMB 535 million to RMB 807 million during 2020-2024. However, challenges remain, including incomplete risk quantification and imbalanced group governance efficiency. The paper proposes targeted optimization recommendations to provide practical references for listed companies in building efficient internal control systems.