Investigation On Internal Control Of Chinese Enterprise

The amelioration and implementation of the internal concontrol of an incorporation is becoming a more and more concerned topic nowadays. Among the marketing companies in China, there have been a lot of fraud cases such as the ZhongHangYou event and the YinGunagSha event which indeed astonished the whole society. In the foreign countries there were also several giant international companies that had experienced mysterious bankruption round after round, such as AnRan and Merk, which shaked the world. All of these phenomenon presents serious chalenge in front of us. The previous investigations with sensible achivements have paid attentions to the bloom, downfall, survive and perish of a company development from different view angles, however, no sufficient endeavours were made from a company's internal control point of view. At the new situation of integrative developing tendancy of the nowadays world economy, strenthening and ameliorating the internal control system will be of unique significance in both theory and practica categories, regarding improvement of the internal control mechanism and also advancement of the internal control theory.Based on the anlysis with regad to the prevailing internal control theories in the world as well as the state-of-the-art of the internal control practices in our country, the thesis takes the corporate governance as lines of clue and adopts a methodology of normalised research and case studies with a view to discovering the root of the above phenomenon and proposing the fundamental scheme and configuration for internal control system formation, as well as presenting effective measures for system amelioration of internal control.Internal control mechanism normally experiences several stages, i.e. internal holding, internal control system, internal control structure, corporate risk management and internal control intact frames. From the control target point of view, it targets multiple purposes, such as assurance of assets safety and intactness, reliability of the accounting data, appropriate following of normal rules and high efficiency of management. If spoken in key control factors, it may undergo "two factor theory" namely internal acounting control and internal management control, "three factor theory" comprising internal control environment, accounting system and internal control procedure, "five factor theory" i.e. control environment, risk assessment, control activities, information and communications, internal supervision and so on. Presently, the internal control factors are developing from five to 8, i.e. internal environment, object designation, item recognition, risk assessment, risk response, control ativities, information communication and monitoring.The thesis makes endeavours to give a full understanding and mastery to the internal control subject preferably from a superior point of view of administration theory. The generation and development of internal control mainly correlates well to the pressure on a company's internal administration. Also, fast and universal acknowledgement of internal control in the whole society benefits from the development of the registered accountant system. In addition, the advancement of auditting causes pushes ahead the deepening of the internal control theory. Further, internal control is studied and understood from the view angle of company corporate governance, so as to realise syncretization and joining between internal control and company management with the same control target.Internal control is directly correlated to an enterprise's administration system. The thesis has given a thorough summarisation to the pending issues with internal control facing the enterprises in China.With regards to internal control norms and system construction among the companies in our country, concrete countermeasures are presented to ameliorate coporate internal control, namely innovation of internal control concept, combination and coordination between internal control and company administration targets; strengthening of risk assessment of corporate internal control; establishment of uncovering mechanism of internal control information; enforcement of internal control monitoring; strengthening capability of internal administration together with improvement of other relative capabilities; enforcing establishment of a sincere and honest system among the whole society and all the companies. Especially, internal control system should be combined with the running mechanism of company governence and administration, and the capability of internal control of a company should be taken as one of the significant reference to evaluate and praise the company's comprehensive capability and the company leader's achievements.