Research On Internal Control Of Railway-diversified Group

With the reform of railway enterprises going deep, railway-diversified enterprises are standardized to develop constantly. In order to realize the goal of railway striding development, railway-diversified enterprises are speeding up their steps of reform and becoming the fresh activists of railway reform. But during the course of railway-diversified groups'growth, imperfection of internal control becomes the bottleneck. It reduces the efficiency of operation, and makes it hard for railway-diversified groups to enhance their core competitive power. It is very necessary for railway-diversified groups to improve their internal control system as soon as possible.The author makes a research on Tianlong Group's internal control system in this paper, and hopes other railway-diversified groups can use for reference. The author elaborates the internal control theories at first, and takes COSO integrity framework as the basic theory to construct Tianlong Group's internal control system. The characteristics of group corporations'internal control are fully considered and analyzed in this paper, including the function and key points of internal control in groups, the methods to strengthen internal control, and especially the particularities of railway-diversified groups'internal control. Then the author evaluates the current situation of Tianlong Group's internal control by amount of investigation, analyzes the reasons, and gives some advice to improve Tianlong Group's internal control basing on the theories above. At the end of the paper, the author draws some conclusions and puts forward the questions need to be researched.The main innovation of this paper is that the author raises the specific characteristics of railway-diversified groups'internal control, analyzes Tianlong Group's internal control problem in a systematic way, and gives some suggestions considering the particularities of enterprise group on the base of COSO.