Research On Internal Environment And Internal Control Of Enterprises

It's clear that nowadays, within the enterprises of our country, such phenomena like interior environment imperfect, internal control system far from well-establishing, high-frequency of defeat in the internal control practice are still prevailing. Under this background, the paper analyses the domestic enterprise interior environment and present situation and the existing problems of the internal control. As well, profiting from COSO,ERM and so on about internal environment and internal control leading frame and spirit, the paper carries on the systematic research with the unifications of internal environment and the internal control from the point of view of risk management. With close combination of current situation of Chinese enterprises, the paper tentatively proposes a couple of thoughts and ideas about strengthening the construction of interior environment and internal control system construction of the enterprises in China. This article altogether is divided into four chapters with the concrete abstract is as follows:First chapter , introductory remarks. This chapter summarises the research background of the present paper, draws out the questions to be studied, as well as the significance of such study. With a brief retrospect of the relevant research summaries from both China and overseas, this establishes the academic foundation for the research. This chapter briefly introduces the paper's fundamental research mentality and logical organization, as well as research innovation and insufficiency.Second chapter, internal environment and internal control. This chapter is the foundation for this article to carry out the analysis. With the definition of internal environment in view of risk management, we establish that internal environment is the basis for all other consisting parts of enterprise risk management ; It facilitates the gradual fusion of internal control and the enterprise risk management, which enables the healthy long-term development of the enterprise. This chapter also carries on the thorough analysis on the main integrant part of enterprise Internal environment thus enables the enterprise to better understand the roles played by internal environment in the internal control and the risk management. With three-levels analysis on internal control development phases, connotation and essence, as well as enterprise internal control system, this chapter may help the enterprise to grasp the internal control process advancement, trend of development and control of every joints. Through the relationship analysis of Internal environment and internal control, we may understand the interrelation and interactivities of the internal environment and the internal control as well as the role they play to jointly push the effective operation of the enterprises.Third chapter, present situation and problem analysis of internal environment and internal control of enterprises in China. Being the trunk of this paper, this chapter analyses present situation and problem analysis of internal environment and internal control of enterprises in China coupled with massive case studies. The analysis of the internal environment of enterprises in China is concerned mainly with executives'integrity and moral values, corporate governance and organisational structure, risk management philosophy and preferences, human resources policy and practise, and enterprise risk control culture. Analysis of the flaw of enterprise internal control is mainly carried on from the three levels of enterprise internal control system. Thanks to the analysis, we hope to find the origins of for the enterprises in China that have long disregarded the risk and produced the false information, in order to prevent the repeating of similar incidents.Fourth chapter, Based on the third chapter, this chapter tentatively proposes a couple of thoughts and ideas about strengthening the construction of interior environment and internal control system construction of the enterprises in China. Fifth chapter, conclusion and implications. As a conclusion part, this chapter gives a comprehensive summary to this article and makes a forecast to this thesis research.The innovations of research viewpoints and research conclusions of this article are displayed in: 1,Innovations of research viewpoints. Current studies are focused on the research of internal environment and internal control under the framework of COSO and it's quite rare for such study to combine both. This article attempts to take the risk management as viewpoint, study internal environment and internal control under the framework of'Enterprise Risk management—Overall Frame'ERM Frame, unifies both to further research into the interrelations and interactivities to enables enterprises to achieve the goals.2,Emphasis that perfect internal environment and effective corporate governance should contain the mechanism of enterprise social responsibility undertaking and realisation. Thus, enterprise's internal environment can be improved and the internal control only then has the actual effect. The enterprise, especially the executives, if they are lack of sense of social responsibility which will be supposed to have, the stakeholders'benefits will be neglected; moral risks will be increased; false information, fraud as well as risk disregards can not be under the active control.3,Emphasis on strict and effective supervision which will be deployed to enhance to encourage the enterprises'executives, whereas continuous encouragement on executives can not definitely decrease the act of fraud. Hence, great attention should be paid to legal the deterrent force and together with"Rigor laws to compel the executives'to fulfil duty and do their parts at work.