Research On Perfecting The Internal Control Of M Company

Internal control theory has already developed for decades, which has been developing and researching continuously, continue to be fulfilled, due to the demand of social practice. Based on view point of evolution of internal control theory, it has being more and more extensively needed, whether abroad or in home, the development of internal control has never been ceased, no matter in terms of quantity or quality. Generally speaking, with the rapid development of the global economy, even financial crisis also unable to prevent the development of global economic, many companies are unable to adapt to such development trend facing bankrupt or have already gone bankrupt, but companies survived are much more. The failures of enterprises were great warning to the later generations, when summarizing the reason of the failures of enterprises, internal control problems are almost as common the factors highlighted. In fact, in practice, to meet the needs of production and operation management, many companies have already formulated simple internal management system, such as standards to help the company managers to manage the business activities of the company, management of control and evaluation. The system covers a series of necessary management measures adopted by companies to make sure the companies’economic activities are normally operated, and reflects the requirements of establishing and consummating internal control as a whole. But the companies with perfect internal control system and working effectively are so few, common problems existed are as follows:first, many companies are lack of a perfect internal control system, in order to meet the needs of management of production and operation, many companies have already developed few standards of internal management, but has not yet formed a complete system, there has being lack of some standards of internal management, such as lacking of "cash management system", "fixed assets management system" and "the archives management system". In addition, companies have failed to carry out the internal designing and planning from the perspective of the whole company. The policy and operating programs of internal control is developed basically by the functional departments making use of it, in this mode, each department may considered from its own benefits while ignoring the global, resulting in the companies lack of planning and coordination as a whole. If some of the operating programs will increase the workload and the difficulty of some departments, the department is likely to omit the operating programs during the designing of the system, on the contrary, if the companies design the internal control system as a whole, problems can be avoided simply.This paper takes M company as an example, in view of the above problems were discussed, thinking that companies whose internal control system is not perfecU implement and has low working efficiency should form a complete set of internal control system, supervising the operating of internal control system in company’s operating process. And specifically start from the basic introduction of M company, the analysis of the existing situation, M company’s internal control problems and reason analyses are introduced based on five elements of the internal control perspective, aiming at thinking out researches solving the problems existing in the internal control.