Study Of The State-owned Enterprise Internal Control Frame In NetWork Environment

The development of the network environment brings enormous changes into the enterprise's organization structure, operation flow and methods of information processing, therefore, significantly affect its internal control. When the enterprise's business model in network environment has been an essential leap: the information attributes that the control systems rely on,the transmission and understanding of the information and its cost has undergone fundamental changes;the internal control framework of theory would inevitably face the specific request of reconstruction. So it's necessary to design a new internal control frame in the network circumstance.Began with the definition of the concept of the enterprise internal control in network environment,based on the research of the changes of the enterprise's internal control under network environment, we realized the emphasis on control by the use of IT systems and the control of IT systems would be an important part of the enterprise internal control. This paper uses the advanced internal control frameworks of COSO, COBIT4.0, etc. as references, implements integration and optimization to the theories and practice of traditional enterprise internal control, and creates a theory framework of internal control for state-owned enterprises in China, which meets the informationization development requirements of modern enterprises under network environment and covers the target and the four essential facets of internal control: control standards, internal environment, control process, and control supervision. The effectiveness of this theory framework was justified by the fact that one of the large commercial state-owned enterprises achieved a 17% Year-on-year increase in sales within the corporation level in the 1st quarter of 2007 by implementing the framework and thereafter launched a good growth period. This paper expects to propel the construction of state-owned enterprise internal control framework at both theoretical and practical levels under current practical network environment by integrating the theory and analyzing the systematic and stepwise practice in building the internal control framework from the confirmation of the internal control objectives and criteria to the improvement of the internal control process. We hoped that the in-depth research and development of this field would be helpful to more and more state-owned enterprises internal control building in network environment.