Research Of Chuan Yu Telecom Corp. Internal Control Mechanism

The general existing appearance is that the Chinese business'life cycle is very brief, and the average life has only 6.5 ~7 years old. However, private enterprise's life is more briefer, there are about 2.9 years old merely. But the average life of the world 500 is living between from 40 years old to 50 years old. So there is the tremendous divergence between the Chinese business and the well-developed business on the administration level. Especially, much domestic businesses have insufficient high opinion on internal control. So that, lots of Chinese business crashed, example for, Ai Do group, San Zhu group, Ju Ren group,etc. According to the survey of the CBIS, the proportion of fall through of the Chinese business as a result of internal control thrashing is up to 58%, private enterprise still more is being up to 80%.Internal control is one of composition core of corporate governance as one kind of system management. The entire administration quality of business is come to lift through it. Thereby, enterprise's hazard can be guarded in advance. And the loss may be cut down to the least degree. So corporate can shake off the predicament before falling into the crisis phase.In the paper, author has strived to discover a way that how to reengine internal control mechanism for Chinese private enterprise by studying and reengining Chuan Yu telecom group's internal control mechanism.Based on internal control theories, the writer analysed Chuan Yu's internal control system included control environment, risk assessment, control activities, information and communication, and monitoring. Depended on analysing, the reengine scheme of internal control has been drawn up and Chuan Yu's new internal control system framework has been established according to some internal control theories and management theories. And the effect was evaluated through qualitative method and quantitative analysis.ffl 55In the paper, author think private enterprise must abandon the management means based on blood relationship and establish the contemporary corporation system based on contracts, so the specifing of property rights is very important. On this base, private enterprise can head for the ageing and develop to the large scale phase by establishing and improving the system which internal control mechanism is the core of it. Thereby, can avert the result?Foundation, Rise, Decline".In short, author wish to supply some thinking and references for private enterprises that plan to reengine their internal control system.