Research On Construction And Application Of Value Chain Internal Control Framework

Internal control based on the value chain is to introduce value chain theory to the internal control theory.It is the new theory of combining value chain theory and risk management theory to internal control design and implementation, which is the inevitable result of the market economy growth and the growing business maturity. Since 2005, our scholars concern the value chain of internal control issues, theory and practice has aroused widespread concern. So far, the theory has made considerable progress, but in applications has just started. This article will explore this in research.This paper reviewed the results of previous studies, based on the internal and external value chain theory, system theory, coordination theory, theory of risk management and internal control theory, which is the foundation for the study. The research methods are induction, deduction and case analysis. This paper researches the deficiencies on the value chain internal control's theory and application, and build a value chain internal control framework; this paper's research of the framework of value chain internal control and the discussion consists of two parts, first,the basic principles of framework construction which is the internal control framework of the value chain, including controllability of the value chain and the operation of internal control mechanism, mechanism and process, functional structure, techniques and methods, and second, every link in the value chain of internal controls, including internal and external value chain and the upper and lower and middle part of the internal control; Finally, this paper selects the Yunnan Tin Co., Ltd. as an example, the framework of the value chain internal control applied to cases of corporate management and management, it proves that the internal control framework of the value chain constructed in this paper is feasible and effective.Building the framework of the value chain internal control with the internal and external value chain theory, is the innovation of this article.