Research On Enterprise Risk-oriented Interal Control Of China

In the current globalization,the increasing degree of information technology background, capital,technology,talent and accelerating the flow of goods,and they also gradually become more complicated.These changes greatly increase the socio-economic uncertainty, businesses have to face a wider scope, therelationship between the risk of more complex, in order to sustained and stable development of enterprisesneed to take a series of measures to prevent and avoid risks modern risk-based internal control system isthe establishment and perfection can help enterprises better control risk, sustainable development ofenterprises has a very important role.but the grim reality tells US about the failure of intemal controlperformance：lack of good faith,false accounting information, corporate fraud cages frequency Hair and soon, show that in the design of internal controls as nawed. the flaws in effect, the state and enterprises willtend to cause severe economic losses and adverse social impact. Many enterprises are not aware of theestablishment of sound risk oriented importance of internal controls, resulting in loss of internal control,lack of effective control of risk，early in2007the United States at the outbreak of the credit crisis inSeptember2008occurred in China’s Sanlu milk powder poisoning, in the final analysis is due to corporatelack of understanding of risk,failed to effectively prevent risks caused.In July2008with “the basic norms of corporate internal controls,” an official release shows thatChina has preliminarily established a relatively complete set of risk-based internal control system, forimproving the quality of listed companies in China to support domestic enterprises to better and faster“goout,” China’s overseas listed companies to enhance the market image of the system to provide security andactive support. However,China’s listed companies in risk-oriented establishment of internal control there is still a lot of problems need to be further improved and perfected. In order to enhance the effectiveness ofinternal controls, this anicle on our internal control problems for some analysis and put forward a numberof countermeasures for discussion.The main conclusions of this article,as well as new points：The first chapter is an introduction to introduce the background and significance of the researchstatus,research ideas and research methods, and innovative point of this article.The second chapter is the Theory of internal control and risk management. The first outlines the basictheoretical knowledge of the internal control and risk management,and development of the theory wereevaluated, and then on this basis, the relationship between internal control and risk management arediscussed. This section is the starting point of the entire paper provides a solid theoretical foundation andresearch guidance for further research.The third chapter is China’s internal control mechanisms and Genetic Analysis．First, from theperspective of a comprehensive risk management analysis of the problems of China’s internal controlmechanisms, and then analyze the reason of the problems of China’s internal control mechanisms..The fourth chapter is a reconstruction based on risk-based internal control mechanism, firstexpounded the reconstruction mechanism, including the definitions, objectives and elements of thereconstruction mechanism is mainly drawn from the analysis for the fourth part of the status quo andcauses;will reconstruct the mechanism of the existing mechanism for comparison and analysis ofdifferences and the advantage of the reconstruction mechanism.The fifth chapter is the application of the reconstruction mechanism-analysis of the Sanlu incident.Sanlu events from the six elements of the reconstruction mechanism inspiration drawn should strive tofoster a culture of enterprise risks, rationalize the corporate governance structure, strengthen the implementation procedures, strengthen the control of information systems, strengthen external oversight.The reconstruction and application of the mechanism of this article with some guiding significance for thepractice of building China’s internal control.This article hopes to make our internal controls to increase R&D efforts in order to better address thecorporate governance of China’s practice of the lack of good faith, false accounting information, businessfraud．At the same time hope to see more of the internal controls of interest to people into the designexcellence and efficient internal control system the subject of research in the past.