Research On Internal Control Of China Mobile Gansu Company

The bankruptcy of Enron, WorldCom, Xerox, a number of large companies, showing the world the risk management of defects the great dangers of the enterprise. Eventually led to the U.S. Congress passed the2002Public Company Accounting Reform and Investor Protection Act "(ie, the2002Sarbanes-Oxley Act on July25,2002, hereinafter referred to as" SOX Act")."SOX Act" after U.S. President George W. Bush signed formally into law and entered into force. Many large companies in the international emphasis on risk management, the importance of internal control system construction.Gansu Mobile is a wholly owned subsidiary of China Mobile Communication Co., Ltd.. China Mobile Communication Co., Ltd. shares are traded on the Hong Kong Stock Exchange and listed on the New York Stock Exchange trading. The Gansu mobile need to submit financial reports in accordance with the requirements of the SOX Act. And State-owned Assets Supervision and Administration Commission in June2006introduced a central enterprise wide risk management guidelines, the central enterprises to establish a sound internal control system.Gansu Mobile, first of all, the sorting out of the system of internal control theory, and examines the internal control framework to build on the basis of the Review of domestic and international internal control theory, process control objectives and the various elements. Furthermore, the basic theory of internal control as a guide, Gansu move the existing internal control system, the status quo, that the the Gansu mobile internal control ineffective. On the surface, due to the internal control system is imperfect, implementation of internal control to lax lead to internal control deficiencies; However, from the root of the problem, the company’s internal control environment is weak, weak awareness of risk, poor internal communication implementation of internal control to the lack of supervision, performance evaluation indicators is imperfect. Gansu mobile internal control system to build their own ideas, including (1) identify the basic principles of the internal control construct;(2) In accordance with the COSO internal control framework, from the control environment, risk assessment, control activities, information and communication, monitoring the five aspects to strengthen the company level control;(3) strengthen the overall control of IT;(4) to strengthen the business process control. Finally, the internal control system should be strengthened through testing and effectiveness testing to ensure that internal control has been the effective implementation of environmental change on the internal control system for continuous improvement and optimization.