Proposition Of Using COSO Model To Improve On The Internal Financial Control Of CT Group

Since 1990's, many well-known domestic enterprises have been almost bankrupt. Many famous multinational corporations suffered huge losses in the 1997's South-east Asia financial crisis, The writer analyzed the failure reasons, and found that the failure enterprises had the same deadliness's weakness, lack of internal finacial control. Studying internal finacial control system and operation mechanism has important impact on improving the state of internal control in our country.In terms of related theories of the control, finacial management, the writer describes the basic theory of internal finacial control, including basic definition and contents, the core position in finacial management. Then introduces the developing stages of financial control, summarizes that COSO model is the new stage, the latest program and measure of internal control. COSO model has important reference effect to strengthen and consummate internal finacial control.Through the questionnaire investigation, the writer found out some defects of internal financial control system of the CT Group, including bad control environment, weak risk assessment, less control of investment process etc. CT Group is also infected by"State-owned enterprise general disease", analyzes the reasons of the birth of the defects.Basing on the survey, the write tries to use COSO model to improve on the internal financial control of CT Group, cash flow and investment process are chosen to improve on the internal financial control.By combining the latest internal control theories and obeying the spirit of COSO model, this paper deals with the control of cash flow through the five relevant respects: building the control environment of cash flow management, strengthening the assessment and prediction of various kinds of risks which will influence enterprise's cash flow,standardizing and perfecting various kinds of control activities of the cash flow,setting up and perfecting the information system of the cash flow and strengthening the information sharing and the control of the cash flow in order to realize the goal of maximizing the enterprise value and the sustainable development of enterprises.To improve on the internal financial control of investment process, some measures should been taken in these aspects, including the content of investment control, the mode of investment, key control points of investment, the method of investment.In the end of the paper, some effective measures have been suggested to improve on internal financial control of domestic enterprises.