Research On Internal Control Self-assessment Under New COSO Report

Internal control plays a vital role in ensuring enterprises'normal production and operation, and internal control self-assessment as a re-control method is a necessary link to achieve the objective of internal control. Taking a wide view of internal control failures at home and abroad, most enterprises had internal control, but control self appraisal did not play its due role in re-controlling. COSO published "Enterprise Risk Management - Integrated Framework" (New COSO Report for short) in 2004, providing internal control self-assessment a new theoretical basis. Research on internal control self-assessment under New COSO Report is of great significance for enterprises in strengthening risk management and improving internal control.In this paper, I try to design a rational and effective internal control self-assessment index system on the theoretical basis of the New COSO Report, so as to assess enterprises'internal control scientifically and fairly, promote enterprises'healthy and sustainable development and enhance their competitiveness. First of all, I introduce the research background, present status, research ideas and methods, pointing out problems of Chinese internal control self-evaluation. Secondly, I make a brief account of the evolution of internal control, compare the old and new COSO reports and put forward the feasibility of research on internal control self-evaluation under New COSO Report. Then, I elaborate the concept, objective, subject, criteria and report of internal control self-evaluation under New COSO Report. Moreover, adopting eight elements in New COSO Report and the principle of combining qualitative and quantitative elements, I establish a self-evaluation index system using AHP to set weight. Finally, taking YQ CAR CO., LTD for example, I analyze its 2009 internal control self-assessment annual report, and verify the scientificity and effectiveness of the self-evaluation index system above.