The Research On Effectiveness Of Internal Control In YUM China Division

On 22 May 2008, in accordance with the relevant laws and regulations of China, and in order to improve and standardize enterprise internal control, enhance business management standards and risk prevention capability, promote sustainable business development, the Ministry of Finance together with other China Regulatory Commission have formulated and herewith publish the "Basic Standard for Enterprise Internal Control" that shall take effect from 1 July 2009. The Standard applies to listed Chinese companies. Meanwhile unlisted large and medium-sized Chinese companies are encouraged to adopt the Standard.The Basic Standard not only supplies a clear definition and the reasonable objectives of the internal control, but also provides the principles of establishing and implementing internal control. The important elements when establishing and implementing effective internal control is include in the Standard. It also encourages the enterprise to apply information technology to improve the safe and stable operation. The content of new Standard is coincident with COSO Internal Control Integrated Framework, which states we are going to meet with the international development on internal control.Based on YUM! Brand Inc., China Division's development of internal control, I want to research how to work out the following exist issue in the development:How to optimize internal control activities; How to break through the traditional bandage of internal control which the most managers hold in brain; How to improve the procedure on preventing management risk; How to strengthen the control in the technology systems;The above issue will be provided help and conference for our Chinese enterprise on the internal control development road.