Research On Some Problems Of Enterprise Internal Control

There have taken place a series of major financial fraud since the 21st century from the Enron bankruptcy to WorldCom financial scandal, from the "Chinese Enron Events" YinGuangXia events, ZhengBaiWen deception event to the ZhongKeChuangYe stock price anipulation case's occurrence that was called "Chinese stock market first case",which greatly dampened investor's confidence for listed companies and their management in capital market.,People start to pay special attention to the internal control after deliberation. At the same time,the theory and practice are in for the study of internal control.The system of enterprise internal control has become research's hot spot for academia and practice at present.It shows that China enterprise management benefit is generally poor and there exist serious accounting frauds, serious distortion, the enterprise financial report illegal phenomenon are increasingly fierce from the current reality. The economic reality urgently require our country enterprise early to establish and perfect enterprise internal control system. How to improve the competitiveness of enterprises and display a more positive state in the world competition in the trend of enterprises is going to be the major problems and difficulties.The internal control system of enterprise plays an important role in achieving its goals, completing management entrusted with the responsibility of a kind of means in the enterprise internal management monitoring system. China's ministry of finance, the auditing, the securities, banking, and circ jointly issued "enterprise internal control basic norm " on May 22,2008. The listed company begin to practice it since July 1 2009. The private large and medium-sized enterprises are encouraged to implement.The ministry of finance and five departments jointly issued "the enterprise internal control supporting guidelines" on April 26,2010.It marks China enterprise internal control standard system is basically completed along with the 2008 "enterprise internal control basic norms",which adapts our enterprise actual situation and fuses international advanced experiences.This paper starts to review the literature on the internal control both at home and abroad.Then,it describes the definition of internal controls, objectives, principles and elements and analyzes the theoretical basis of internal control - cybernetics, system theory and principal-agent theory. Finally,the paper analyzes the problems of enterprise internal control to put forward a sound internal control recommendations,which combines with our national conditions.