Internal Control Theory Research

All through the ages, the research of the internal control is concerned by accounting and audit. A perfect internal control system is regarded as the effective way to resolve many potential problems. For the existence problems of the cooperation goals, cooperation management, enduring development, profit, risk, information etc, people give internal control more expectation.In retrospect the developed history of internal control, we find that there has been an unparalleled development in the theories of internal control. On one hand, the studying achievement of these theories not only enriched the inner meaning of internal control, but also deepened the relization of it. On the other hand, it limited the angle of view of internal control. Within its risk control framework, COSO has brought the achievement of stratigic objectives and the management of risk into the study of internal control. This shows COSO's effort on establishing a common platform from its exsitinginternal controlframework. However, this is just a begining for its vision is not broad enough and the result is not as good as expected. In China, many scholars also have conducted and formed various reserch and discussion on internal control, and have achieved great success. Most reserch of internal control done in our country is based on COSO's study, either though introduction, or combine it to the practicality of our country. The achievement of these theories has taken an undeniable effect on promoting the development of internal control of our country. Neverthless, there is no common understanding of internal control, and no agreement can be reached upon some fundamental issues. It is currently in a disordered status.The essential cause of this problem is that people have different requirements of internal control. This can help people understand the internal control system from different aspects, therefore drive the development of its framework. However, after its development reached a certain stage, this characteristic may prevent the system from further advancement. So, we needed establish a whole structure in objective,then,researched the different aims and the requirements together in this whole structure. It was not only satisfied the requirements but also unified the different recognitions in a higher degree. And then,formed a power and promoted the development of the reseach of the internal control. Based on the aim, this article judged the internal control of the business again from the whole angle, and made an analysis from the meaning, the corpus (main body), the guest body , the essence, the function, the goal and the content of the internal control. I hoped that we can unify the recognition.This article divided into 5 chapters. I displayed the summary of every chapter.Chapter 1: the development of the internal control. This chapter reviewed the development process of the internal control, and recounted the characters of every stage simply, and made a short appraisement. What's more, this article introduced the reseach of the internal control of England and our country.Chapter 2: the appraisement of the theory of the internal control.This chapter followed close behind the chapter 1, and summed up and had a comment on the locus of the development of the internal control. It summed up the regulation of the development of the internal control and pointed out the difficulty of the development of the internal control, and explored the tendency of the internal control else.Chapter 3: the meaning, the corpus, and the guest body of the internal control. This chapter described the meaning of the internal control from the angle of the business, and thought that the essence of the internal control was the business. The reseach of the internal control should base on the business. It analyzed the constituent and character of the guest body of the internal control from the theory of adreement, and made a base for the design of the internal control.Chapter 4: the essence and the function of the internal control. This chapter analyzed the essence and the function of the internal control, In order to ensure the agreement can execute according to the requirement of the people who correlated the benefits. The internal control must raise the efficiency, and concert the benefits between the people who correlated the benefits.Chapter 5: the target and contents of the internal control. This chapter puts forward the target system of the interal control from the angle of the enterprise subject. The general purpose of the internal control should be the realization of the target of the enterprise, ie, the general target of the internal control should be the same as the target of the enterprise. In the narrow sense, the general target of the internal control is the financial target of the enterprise. The classification of specific targets use the four major targets of COSO for reference and make a determined design for the choice of the internal control measures.The originality of the essay lies in:1.View the internal control issue from the standpoint of the enterprise as a whole. Traditionally, the internal control overweighs the accounting control and does not pay enough attention to the management control, mostly the study of the specific sectors of the internal control. The angle of the study is comparatively narrow and the level is low. This is also one of the reasons why our country's enterprises have a weak internal control. This essay reexamines the internal control from the standpoint of the enterprise as a whole. The author hopes to establish an unified study structure and put the current chaos of the internal control study in order.2.redefine internal control and analyze the scope of the internal control thoroughly. The author believes that the boundary of the internal control should not be limited to of the physical or legal boundary of the enterprise. Internal control should extend to the outside of the enterprise. That is to say, every important fields that can be influenced and worked by the enterprise can be seen as"controllable"and should be in the field of the internal control.3.analyze the nature of the internal control thoroughly. The author argues that internal control should not only impel the enterprise contract works according to the requirements of the party whose interest is concerned but also directs the restructuring of the contract relationship, ie, identify the factors that impel the changes of the contract relationship making use of its powerful information system function, transfer to the party whose interest is concerned in time, thus to direct the optimization to meet the requirements of the change of the environment and raise the adaptability and competitive ability of the enterprises. Internal control should also have the ability of self-diagnose and self-perfection. It can make adjustments accordingly promptly to adapt to the new contract relationship under the new environment after the adjustments of the enterprise contract relationship.4.analyze the target of the internal control comparatively thoroughly. The author believes the target of the internal control is a logic system with many levels. This essay makes clear the logic relationship of the targets of the internal control and the major and minor relationship of different targets. It coordinates the general target of the internal control and the target of the enterprise thus gets rid of the long-term contradicts of the targets of the internal control.5.perfect the contents of the internal control. The internal control not only be limited to the establishment of the restrictive system of the supervision but also should encourage the staff's mechanism of self-teaching, self-renewal and self-direction. In this mechanism, not only"law ruling"should be emphasized but also the"moral ruling"with the aim of establishing the core value and moral value of the staff should be stressed. The two must be combined together organically. In the system of encouragement , the enterprise should emphasize on the construction of the information system to collect, arrange , analyze all sorts of information promptly and accurately as well as transfer to the people whose interest concerned efficiently in order to direct and optimize their conducts.