Internal Control System Administration Research And Application Of Chongqing Wanyou Co.Ltd

With the development of economy, the problems of management are becoming more and more in Chinese enterprises. Distortion of accounting information and loss of state-owned assets are all concerned with the malfunction of internal control. So we must enhance corporate internal control. A healthy financial control system actually reflects the perfect corporative management structure of the enterprise. Establishing a suitable financial control system according to the actual management performance is very necessary to an enterprise.The article include three parts: At first, reviews the development of related internal control theories, analyzes the status quo of internal control system in the enterprises form both China and overseas; Then, analyzes the internal control system of Chongqing Wanyou Co.Ltd. in details using COSO's definition of internal control system, which defines internal control as five integrated parts: control environment,risk assessment,control activities,information and communication and monitoring. Identifies the key problems in Wanyou Co.Ltd. internal control system and the main reasons for these problems; Finally recommends to take some measures to make improvement.With the analysis, the article concludes that in most cases there're two main reasons for internal control failure in business: either the design of internal control theory is unreasonable, which can't meet the requirements of COSO's internal control theory or the internal control system can not be implemented strictly following original design. By designing the internal control system for the company, the article brings forward the thoughts and methodology for unitively establishing the internal control system, which provides a scientific thought for Chongqing Wanyou Co.Ltd., and definitely a reference to other companies for establishing such an internal control system.