A Case Study On Internal Control System

Internal control system directly related to corporation behavior. Now the company is operating in a more widely-opened capital market with risky derivatives transaction, following globally-developing strategy with longer control line and activity line, aiming at value-maximized operation goals to balance interested groups. All these go far beyond the scope and capability of the traditional control theory and practice.In 2002 and 2004, the Sarbanes-Oxley Act (or SOX) and the Enterprise RiskManagement——Integrated Framework were approved respectively. Again it makes freshdefinitions, and is generally accepted as a standard concerning internal control.The thesis supports the Integrated Framework and thinks internal control is the cell and the conscience of corporation behavior, to establish internal control is an internationally standardization process.The thesis has four chapters.Chapter 1. Introduction. Firstly, it reviews the internal control theory fruits in international and domestic area; secondly, it makes definition based on Integrated Framework.Chapter 2. Related theory. Firstly, it elaborates three theories and their correlation with internal control. The three theories are the value line management theory, the corporate governance and the financial information disclosure theory; secondly, it brings a theory to establish an internal control system.Chapter 3. It figures out the Internal Accounting Control within corporation S andChapter 4. Improving activity. It gives three kinds of solutions: to improve process, to evaluate risk and to make new internal control policy on account receivable.