The Perfection And Evaluation Of Internal Control For The Enterprise In China

In the process of constructing the modern enterprise systems, the "internal control" effect within the enterprise became of some importance. The reason may be incompleteness of the internal control within the enterprise and failure to display effective influence. The study on the internal control aspect aboard started early and is fruitful while in the practical field the internal control systems in the enterprise are becoming relatively in shape. With the reform of the enterprise carried on, it is central to the theoretical study and remains the practical problem in the reform to attack such questions as how to perfect the internal control in the corporate governance and how to reach the reasonable evaluation of the internal control. The problem is given more and more attentions from the academic and business communities.This paper mainly include four parts: the development of internal control theories ,analyze what is our internal control in China ,the solutions to perfect internal control ,the establishment of the reappraisal index system. This paper hopefully adopts a method combined with both the normative and the positive approaches and, it would import theories from such disciplines as economics, management and statistics. In this paper, I would analyze what is our internal control in China and, according to the real problems in the enterprise internal control, come up with some solutions to improve internal control, design internal control evaluation pattern and establish reappraisal index system. The first part, look the development in internal control theories. This paper emphasis on the new contents of internal control.The second part, analyze what is our internal control in China from five aspects. some environmental factors such as governance structures are influencing the internal control. If the internal control in enterprises is short of the scientific procedures for controlling, the control itself would usually go in the wrong directions. The enterprisecannot take effective measures to prevent and control the risks through the channel of internal control, nor can the enterprise send information and survey the controlling effectively.The third part, to perfect the internal control mechanism, it is necessary to take into account the reality of the enterprise in our country, to take measures with reference to the institutional foundations, the controlling procedures, and the surveillance of the controlling, to improve the governance structures of the enterprise, and to stimulate the dual governance structure of the directorate and the management. It is also important to the internal control procedure be set up according to the professional cycles. I would further suggest that let the government take a leading role in the regulation of the internal control and that the oversight by the internal and external auditing be motivated. Moreover, we should import a method of internal control fitting both the reality of our country and the demand of the economic development.The forth part, after the study of the theories and practices both at home and abroad, we propose that an evaluation system model and reappraisal index system be established. We must combine the qualitative and the quantitative to reach the reasonable evaluation of the internal control. While evaluating, we should put emphasis both on the qualitative indexes of management evaluation and quantitative data of finance. It is recommended that relative evaluation be applied to eliminate the influences resulting from the specific environments as for the enterprises in the same industry and that, when it comes to the inter-industry enterprises, different evaluation indexes and functions of the indexes be used to adapt to the different characteristics of the specific industry under consideration. The internal control evaluation index system model entails the comprehensive precaution indexes of the internal control, the evaluation indexes of the internal control process and the evaluation indexes of the internal control...