Enterprise Group Financial Controller Accreditation System

Enterprise groups are playing a critical role in the development of Chinese economy. However, with the expansion of enterprise groups and the extension of corresponding investment levels, the issue of investor control within the trust-agency framework is worthy of research. Under information technology is wide spreading, economics has been globalizing, and some companies' scandal broke, such as ENRNO Corp., the financial control of enterprise group , especially false accounting information, has been a critical issue in the progress of enterprise group. The system of CFO is an effective way of financial control and its mechanism reflects the demand of Trust Agency Theory. It is effective to solve the problem of ownership misplacement and manager's behavior. With the change of surrounding and the progress of information technology, it has been succeeded in CFO strategic transition in the matured marketing economics countries. But most of the CFOs in our country are still financial supervisors. So it has been an important project to improve the system of CFO and it is time to participate in the subsidiaries' management, which is the key to achieve the strategic control, to reduce the decrease of the asset and to maintain the value of the capital.So, the writer wants to research the issues of the system of CFO and the ways to resolve these questions. Standing on the point of improving the system of CFO, the writer bring forth that the solutions, such as the role,the incentive and the obligation are important to the system of CFO.Summaries of the work being done in each chapter are as following:Chapter 1 IntroductionIn this chapter, the writer introduces the motivation behind this study and the literatures review of CFO. The field of this paper is also defined and the summary of the following chapters is also introduced. Chapter 2 Basic contents of the system of CFOFirst, this chapter defines some terminologies that will be used in this paper which is important to the following chapter. To deepen the understanding on CFO, it is necessary to make sure the relationship between CFO and manager, CPA, etc. And the theory of CFO is introduced by the following part.Chapter 3 The issues and reasons of the system of CFOIn the first part, it is analyzed the issues that the system of CFO is invalidation in the financial control of enterprise group. First, the CFO in the subsidiaries is not on the right position which is the largest issue. Second, the mechanism of incentives and disincentives is not perfect. The quality of CFO is another issue. So the reasons are thoroughly analyzed in the second part.Chapter 4 Suggestion and SolutionsPointing to several practical key issues, the writer put forward correspondent solutions, that is, to perfect the system of CFO. It is the most important to fix the position of CFO. So the CFO must be succeeded in strategic transition and it contains three aspects. And it is time to complete the encouragement and restraint mechanism which is also quiet important to the system of CFO. In the last of this chapter, the writer brings forth other suggestions, such as the quality of CFO.