The Implementation Strategy Of Internal Control To The Subsidiaries Of Beichen Media Co., Ltd.

In the enterprise group, the subsidiary and parent companies are equal corporate, thereby the parent company couldn't interfere the business activites of its subsidiaries directly except for managing them through the internal management mechanism indirectly. This relative independence between parent and subsidiary companies may lead to the act which against the intention of the parent company, or even damage the interests of the whole group, such as sign the contract directly, establish the crierrial of the regional fees, make the new local network expansion. Accordingly, the appropriate internal control mechanism should be established in order to prevent the any abuse of resources which may lead to the operational risks throughout the entire group. The analysis of the company's existing internal control system, the lessons learned from the experience and the analysisi of the insufficientthings, all of them will help will help protect the assets of the company's overall security, reduce operational risks, prevent financial fraud, improve operational efficiency and effectiveness, protect the rights of shareholder and parent company, follow the law and regulations; meanwhile, this article can also provide a reference for other companies and by executing. In this article, the writer strives to elaborate the internal control to the subsidiary which made by the parent company based on the internal theory with pratice. The chart analysis should be used for the organization and the control of the members, the questionnaires should be use for the control of the operational level and the chart method is for the financial statements. It should be propose a new design and implementation program for the internal control of the subsidiaries through the application of internal control theory combined with the actual situation of Bei Chen Media Co., Ltd., then strengthen the organization and control of its operational level, consolidate the financial statements and controls and make up for its lack of management to the subsidiaries. Bei Chen Media Co., Ltd. is the province's regional radio and television information network operating company which established by Jilin television joint 49 television broadcasting system units. The companie has registered capital of 880 million yuan, with the head office in Changchun, now has a the fiber optic trunk network 5,000 km which cover the province-wide provincial, municipal and county levels. The network cover nine cities (prefectures), 41 counties (cities) of the province, with the jurisdiction of 54 offices and subsidiaries it has 5,300 employees, serving three million cable subscribers of the province. In recent years, the active efforts made by Bei Chen Media Co., Ltd. have increase the growing scale of operation, but it also increase the risk of management year by year.There are some inherent reasons for the loose organization and personnel management, lack of guidance on business conduct and false statements and other data of Jilin subsidiary. Because Bei Chen Media Co., Ltd. and Jilin subsidiary, formerly known as institutions, not a business. In the institutions of the system, employees are accustomed to reading newspapers, drinking tea water of life.They do not know the true meaning of the market, others are seeking their own things, do not mind the concept of marketing. They do not have a complete charge management system, asset management system and service system, so it is difficult to ensure the authenticity of the report data. The root of these existing series of questions is the institutional reason, and it is the product of history. However, Bei Chen Media Co., Ltd. and its Jilin subsidiary which turn into a business by the institution, have to face the market, change concepts and improve the level and quality of internal control.To ensure the company's business organizations operate efficiently, so that the management duties, responsibilities and authority explicit, meanwhile standard the personnel management, organization and personnel it is need to strengthen internal control. Subsidiary of the parent company shall participate in the governance structure established to determine the constitution of the principal terms of the subsidiary, on behalf of all shareholders elected a director, manager and chief accountant and other senior management personnel. Appointed director of the parent company should establish a sound system. With the board of directors of the subsidiary, the parent company should be sent to its director, funded by the subsidiary board to exercise the rights. Appointed directors should report regularly to the parent company of subsidiary management related matters. Significant risks or significant issues for decision-making information, should be promptly reported to the parent company to appoint directors of the board of directors.Bei Chen Media Co., Ltd. shall establish a business license approval system Jilin subsidiary, a subsidiary of the charter expressly agreed in the subsidiary's business scope and approval authority. Subsidiary shall not engage in business or approving transactions or events outside the jurisdiction. For permissions beyond the scope of business, or approval of transactions or events, a subsidiary of the parent company board of directors or shareholders shall be submitted Council for approval before implementation. Bei Chen Media Co., Ltd. should be established as soon as the appropriate platform, through the platform's role, in order to ensure the authenticity of the report data for business to contribute to rational decision-making.Jilin subsidiary of the control of the organization and personnel should adhere to the construction of learning-oriented enterprises to continuously improve the Jilin subsidiary of the ideological and theoretical level and overall quality. Strengthen the system construction, promote the construction of regular business and standardization, consolidation and development of business-building results, the company building and promoting the work closely.Operational level of the Jilin subsidiary of control functions should be actively adjusted, enrich the power of market development and value-added services to the development of organizational security and intelligence support. At the same time to emancipate the mind, changing concepts, and unswervingly deepen reform of distribution system and establish full coverage incentives.Consolidated subsidiary of Jilin and control, should increase the platform, in order to ensure data authenticity and reliability. Concrete should increase following the construction of a large platform: business platform, operation support platform, service platform.