Discuss On Financial Control System Of Enterprise Group

The practice of global economic development shows that the economicdevelopment and improvement of economic integrated quality as well asstrengthening of international competitive status of a state mainly depend onlarge-sized enterprise and enterprise group. China has already achieved greateconomic development and cultivated a large batch of large-sized enterprisesand groups since reform and opening-up. However, in contrast with therequirements of the situation of economic globalization for enterprise group,Chinese economy still has a quite gap. In addition, many extremely urgentproblems have emerged during the development of enterprise group in China,especially the financial control of enterprise group. The correspondingfinancial control system hasn't been really established yet. Therefore, howto strengthen financial control of enterprise group has already become the "bottle-neck" which hinders the further development of enterprise group.As the principal and basic method for controlling the whole group,financial control passes through all sides and procedures of the production,management, investment, and fund-raising and human resources of the group, etc.It is also one of the most direct and effective methods for assuring the qualityof financial information and improving the correctness of management anddecision-making of the whole group. At the same time, the financial control isthe necessary way to prevent, the risk of the whole group's finance.Thus it will play very important role in the exertion of the initiativesof operators through which enterprise group has established a series ofequitable, fair, scientific and rational assessment systems and methods for itssubordinate subsidiaries. Proceeding from the practice, this article introduces the constructiontheory of financial control system of enterprise group and gives a more detaileddescription of which how, to establish scientific and rational financial controlsystem by enterprise group as well as proposes feasible methods. Additionally,it also comments on financial control system of Chengdu WG Group and put forwardsits own opinions and suggestions on improvement.