Author(s)

Jiayu Zheng, Yuan Tang, Meng Cai

Corresponding Author

Jiayu Zheng

ABSTRACT

Luckin Coffee, as a new retail enterprise, was exposed to financial fraud that shocked the capital markets in 2020. Analysis of its reasons, and the company's internal control failure has a significant relationship. Based on the five elements of internal control, this paper analyzes the problems existing in Luckin Coffee's control environment, risk assessment, control activities, information and communication, internal supervision. And put forward to optimize the internal environment, strengthen risk management, improve the key link control activities, strengthen information and communication, strengthen the internal supervision of targeted suggestions.

KEYWORDS

Luckin coffee, Financial fraud, Internal control