Internal Control Design And Research Of H Company

As the development of economic integration, market competition is getting more globalised and the finance regulation is becoming stricter. The environment that enterprises face is changing instantaneously. Risk management is currently becoming a focal area in modern enterprise management. Shareholders and managements of enterprises always encounter problems resulted from risks inside and outside the entity. These problems are usually hard to solve. Hence enterprises have to build a risk management systematically to identify those key factors which have great impacts on enterprises achieving their objects. Publicly listed companies have to strengthen shareholder confidence by solving those problems shareholders most concerns. Management have to identify key risks,design and implement internal control for those risks and continuously ensure the internal control is operating effectively.The author studied and designed public companies’s internal controls base on her work experiences, and adopted the research result to practice. The author say wishes this essay may give some guidance to other companies in the same industry to build their effective internal control system.This essay is comprised of6parts. Part1is introducing the background and significance of internal control research and research methodology, and the development of internal control and some related concepts. Part2is describing the general information about company H and its current status. Part3anlysises details of the internal controls inefficiencies. Part4is to analysis the root causes of those inefficiencies and the internal and external factors to make improvement. Part5is to recommend solutions to those internal control inefficiencies. Finally, part6summarizes the whole essay and the result of this research and points out the direction of further studies in internal controls.