Research Based On Large And Medium-sized State-owned Enterprise Property Right System Of Sox

The issuing of SOX act has brought large and medium-sized state-owned enterprises an emergency of establishing internal control system, as Section 404 addressing Financial Statement Reporting controls and emphasizing on management's responsibility for controls. SOX act was issued and passed in the background of American high level of corporation operation, fairly distinguishing from that of the large and medium-sized state-owned enterprises. For organizational structures, American firms achieved higher levels of delegation authority and operation formalization than those of large and medium-sized state-owned enterprises. It's fundamentally due to the gap of property rights system between state-owned enterprises and American corporation.This paper focus on the importance of property rights system to internal controls, analyzing the relationship among property, organization structure and internal control, and gets a conclusion that the defection of property rights system of large and medium-sized state-owned enterprises has made internal controls ineffectiveness. Problems about the property rights system of large and medium-sized state-owned enterprises could be categorized into two aspects, property structure and property relationship. The property structure was characterized as being intensively held by government, while the property relationship among property authorities being confused. It's concluded that large and medium-sized state-owned enterprises should optimize the property rights system, which helps to prepare healthy control surroundings for the effectiveness of SOX act.