The Research On Enterprise Internal Control Construction

In June 2008, China's first"Basic Standard for Enterprise Internal Control"promulgated in Beijing and will be implemented in the listed companies in July 2009. So it is not only the practical requirement for completing the basic norms, but also an urgent need for the development of Chinese enterprises to do research on enterprise internal control building.On the basis of theory about the internal control, the paper analysis the current situation of internal control in China and studies the reasons of the problems. According to the characteristics of the corporate governance structure in China, the paper studies the establishment of a system of internal governance and implementation.In our country, the majority of enterprises have set up internal control system, but the results are unsatisfactory. The problems are: the basis of weak internal control environment, risk assessment has not placed enough emphasis, internal control measures are not comprehensive design, poor communication, poor supervision and inspection etc. The proposed improvements are as follows. (1) To improve the internal control environment. From the board of directors to build and perfect the system of independent directors to strengthen the building of the Board of Auditors, give full play to the supervisory functions of the board of supervisors at the same time, executives gradually improve the incentive mechanism to improve the efficiency of internal controls. Second, the realization of building a corporate culture of self-control and promote the effective functioning of the internal control system. (2) To develop a standardized control measures. From the division of duties control, authorization control, the approval of audit, accounting and control systems, performance evaluation in such areas as a comprehensive design. (3) To improve information systems to enhance real-time control, control through a series of activities to be an effective internal control system and improve the environment. (4) To strengthen enterprise risk management. The implementation of risk management authority, responsibility to establish risk control system and risk early warning systems, risk identification and risk assessment. (5) To establish a standard incentive and restraint mechanisms. Encouraging the strengthening of internal audit and making full use of external oversight.