Study Of China's Private Enterprises In The Internal Control Environment

Private companies have become an important force in Chinese economy. They play more and more important role in many aspects, such as optimizing the resorce allocation, enhancing ecnomic efficiency, increase the jobs, stablizng the society and so on.. However, with the increase in the firm size and complexity of the organization, the deficiency of the management in the private companies has become the bottleneck to restrict their development. We think all the problems stem from the uncomplete and unhealthy of the internal control. If the internal enviroment, the basis of the internal control, has big disfiturement, the internal control then can not achieve its goals.As the market competition becomes more and more intense,improvement the internal control circumstance and strengthen internal control systems become an important way to achieve continuable development of Private Enterprise and keep it's competition superiority.In the first place,the paper summarize the internal control theory and the internal circumstance theory,and analyse the status of Chinses Private Enterprise's internal control circumstance,combining the COSO report and ERM frame as the referrence ,and bring forward the poit that only when the good internal control circumstans established, then the private enterprise can have an health and efficient internal control systems.In the end, the paper adopts case study, analysed the GSK company' internal control circumstance,and bring forward the thoughts for how to improve the private enterprise'internal control circumstance.