Analysis Based On The Economics For Internal Control Of Enterprise

After review on the development of internal control theory and practice, the paper analyzes some limitations of research regarding internal control theory at present. In order to have a deeper understanding of internal control theory and give some references for the practice, the paper tries to do some further analysis on internal control from three aspects: property rights theory, contract theory, game theory. This paper includes: the influence of property rights on internal control; the economic essence of internal control and internal control systems, some analysis on contract theory for internal control systems; and the game process of internal control. The paper draws the following conclusions: Firstly, the efficiency of internal control can be improved by proper allocation of property rights. Secondly, internal control systems are basic framework of internal control. Thirdly, internal control is a process of game. Finally, the paper investigates the causes of invalidity of internal control.Up to now, researches of internal control are mostly made from the perspective of practices (esp. auditing practice), and seldom are from economics aspect. The paper has some original ideas in the analysis of internal control from the economic dimension. The author discusses the relation between internal control and internal control systems on economic points, which can give us some inspiration and help to improve the practice of internal control. The paper also discusses internal control systems on game theory, divides internal control systems into formal internal control systems and informal internal control systems, and then makes some analysis on their functions. In addition, appliance of game theory to internal control shows some novelty to some extent.