China Mobile said it had bolstered its internal management and accounting standards, after a review by the National Audit Office identified weaknesses in current procedures.
The Office on Friday released a report into its audit of China Mobile's 2011 results, identifying alleged problems including inflated sales and inadequate supervision at the company's overseas business units.
The report also cites the fact that three of China Mobile's six major foreign investments since 2005 have been unprofitable, generating accumulated losses of 32 billion yuan ($5.2 billion) over the last few years.
In a statement, China Mobile said it had already rectified almost all the weaknesses identified in the report.
“At present, except for a particular matter that has not yet been executed pending approval by regulatory authorities, the rest of the problems identified in this audit have already been rectified, and the relevant responsible persons have been dealt with in a serious manner,” the statement reads.
The company added it had conducted a thorough review of various aspects of its operations and refined management mechanisms behind projects including system design and execution.
The problems identified in the audit should have no material impact on the recent reported results of China Mobile's listed arm.