Research On Strategic Application Of Internal Control

As described in the title of this article,the paper focused on "strategic" and "application." "Strategic" represents the direction of internal control and "application" is embodied in the choice of methods,and thus the theory of the "strategic" and "internal control" will become the starting point of the paper.Then through the example,internal control system will be analyzed. Following with the evolution of the management theory on paradigm,we can see the direction of modem management and importance of culture and other "soft" factors.Then the paper will integrate the former reflections to the proposal of "no controlling" target.Finally,on the basis of the conclusions of this paper,"Internal Control Standards of the Enterprise"(draft) will be thought,and a three-point proposal will be put forward.The subheading- "Based on the audit perspective and the perspective of management" shows that the idea as such:in the community interests of enterprises,"regardless of the audit personnel,and enterprise manager,corporate investor or regulator,each one,in the real world, represents a perspective of internal control,and every perspective,in view of the different demand or being confined to the fields of expertise,on their own need and area of expertise, reflects only particular part of the internal control,and can't be the representative of all." Thanks to these mutual Games,the development of the internal control has been succeeding.In fact,the audit agency and managers have been making the leading roles in these games.Internal controls related to the interests of the game,mainly by the audit agency and managers to lead, because the formulation of the control policy directly determines the outcome of the demarcation(or the interests of the divisions) of the responsibility for the two sides.First,from the topics:"strategic" is slightly inclining to the management,and "application" to the auditing; Second,in the arrangement of contents,COSO integrated framework will be the example of "application",then combining the paradigm of management theory and the understanding of the "strategic application" to a point:the effective implementation of "no controlling" target.Almost all the reasons for the failure of internal controls can be classified as follows:(1) there are loopholes in the internal control system;(2) the system existed can't be enforced.The first aspect shows the shorts of the setting up the policy,some time,even if a perfect system in the theory can't work well in practice,which may be the inherent inadequacy of the controlling system(including the internal control system).The problem of the second aspects belongs to people himself,for hum beings hold dynamic thoughts.When the rules and regulators of control system are malfunctioning,non-regulating factors can be considered,such as behavior, ethics,values,culture.Both must be combined into one long-term sustainable organic.In this paper,"the audit perspective," mainly represents regulating trendy,"Management Perspective" mainly acts on behavior trendy,finally,the point of the effective implementation of "no controlling" target will be concluded.