Internal Control System Research Of Gansu Wanwei Company Base On The COSO

The early 21^st century, due to the financial event from two famous companies as Enron and MCI Worldcom, triggered a global internal control management, corporate governance and regulatory audits strengthen within the industrialized countries particularly US government.In 2002, The US Congress approved the famous "Sarbanes-Oxley Act"(SOX), requiring the management of public companies set up internal control measurement and disclosure the internal control effectiveness, while the external auditor must audit the report. The SOX designated COSO as the company establishment and assessment standard. In the same year, the CICPA also promulgated the "Internal Control Audit Guidance", requiring CCPA must be audited by enterprise internal control system. To set up the comprehensive and effective internal control system, enterprises must compliance with international capital markets and regulatory compliance requirements. On the other hand, the system facilitates enterprises to integrate existing management processes, define clear management responsibilities and enhance the reliability of financial reporting to ensure that successfully achieve business objectives.The aim of paper is to give a specific implementation plan, and set up methods to evaluate the internal control system effectiveness and continuous improvement by using the US COSO model and benchmarking analysis in accordance to the SOX Section 404 in Gansu Wanwei Corporation. The goal is to set up a set of internal control system in line with corporate governance reality, regulatory requirements and capital markets to ensure that successfully achieve business objectives, which include following: (1)To outline the design of internal control manual, describe the relevant financial reporting and internal control principles, policies and procedures, which include the control environment, risk assessment, control activities, information and communication, monitoring in accordance with the COSO model.(2)To design the internal business processes and control points.To reorganize and definite the direct and in-direct operation processes related to company's financial reports based on the current situation. (3)To set up methods of internal control self-assessment, monitoring and improvement based on the information management system.This set of internal control system with characteristics of "prevention-oriented, things in control and remedial supplement". While it provided the guidance of implementation the direct and in-direct operation activities related to the financial report, ensures that these activities are under control. At the same time, the system ensures the regular performance review carried out to monitor the operation effectiveness and deviation from the objectives. And then provides continuous protection of operation effectiveness and efficiency by Real-time system improvement.