China's Internal Control Environment Status Quo And Its Optimization Studies

Internal control system is not only the important content of modern enterprise management, but also the very intrinsic mechanism which the enterprise voluntarily adjustment and restrict themselves. What's more, the internal control environment plays the basic role when the internal control system works. In the present situation, the fraud cases appeared in our life for in these cases, the deficiency of the internal control environment leads to the failure of the internal control system. It comes up with such a conclusion:as the base of the internal control system, the internal control environment acts a very important role. A faulty internal control environment may cause the failure of the implementation of an internal control system, even though this system may be perfect.As the market competition becomes more and more intense, improvement of internal control environment and strengthen of internal control system become an important way to achieve continuous development of the enterprises and keep the competition superiority.Firstly, the paper reviewed the research condition of internal control environment in the domestic and international. Secondly, it develops the main contents of the internal control environment main contents and its basic function in the system. Then, the existing problems of the internal control environment in our country's present enterprises were pointed out and the suggestions of perfecting the environment through focus on the existence of relevant problem and combination with the target and principle of internal control. At last, by adopting case analysis, such as the failure lesson of China Aviation Oil(Singapore) Corporation Ltd and the successful experience of the Haier Group, the importance of the internal control environment in the control construction is concluded.