Study On The Internal Control Environment Of Administrative Institutions

Administrative institutions are trying to build the internal control, optimizing internal control environment can lay a solid foundation of internal control, providing a powerful guarantee for the development and implementation of internal control.Without a good internal environment, internal control system will be useless.Compared to the administrative institutions, internal control of enterprise starts earlier, and is more mature. Many scholars study internal control environment of the enterprise, but the studies of administrative institutions are few. As administrative institutions’ Internal control objectives, funding sources, legal constraints, and external supervision are very different from enterprise, the study of company’s internal environment cannot be applied mechanically to the administrative institutions; internal control environment of their own situation should be established.In this paper, public accountability, New public management, systems theory are theoretical foundation. Through review of the literature,normative research and case analysis method, internal control environment of the administrative institutions is studied. According to Systems Theory and research of about control environment in the new COSO edition, the internal control environment will be divided into two levels, external and internal environment. According to the theory of external and internal environment, this paper studies the elements of the external and internal environment respectively, and present situation and problems of the elements in the administrative institutions are also analyzed, After analyzing the problem, solutions are proposed. Firstly, the external environment is to be optimized, such as strengthening government audit oversight on internal control, actively promoting the implementation of the budget, creating a good social and cultural atmosphere, improving the design of technological system. Then, internal environment is to be optimized, such as improving the organizational structure and the human resources policy, strengthening the internal audit and unit’s cultural construction. Finally, this paper selects a case of Institution to verify the logical framework of this paper.