Internal Control Environment Research On The G Company

As the driving force of enterprise development, the internal environment is in the first place of the five internal control elements. It is the foundation and core of other elements, and has great influence on the internal control system’s establishment and implementation. It directly determines the effects of the internal control systems. If there’re problems on the internal control environment will lead to quality accidents, and the road and bridge construction companies and people will cause heavy losses.This paper uses case analysis and investigation methods, and the information from the G Company. Base on the contents of enterprise internal control application guidelines about the internal control environment, including governance structure, organization institution, development strategy, human resource, social responsibilities, corporate culture, we analyze the G’s present situation on the internal control environment, and find many prominent problems existed in the company. Against the problems, we put forward the corresponding improvement measures. The measures include:improve the governance structure, avoid the directors serving as managers, make board of directors’special committee play their roles; build up the class matrix on organization institution so as to solve the conflicts about the unclear division of work; make its own development strategy to separate from the original holding group; raise the salaries of the available employees, improve the requirements of education background, establish of human resources exit mechanism, and obey the law; make a comprehensive understanding and a system of social responsibilities to enhance sense of social responsibilities; set up a department and standard on corporate culture.This study on the company’s internal control environment aims to provide a good foundation for the implementation of the internal control system. And also have certain reference significance to other road and bridge companies. So they can establish favorable internal control environment of the industry to ensure the quality of the projects, protect people’s lives and property, and promote the economic development stably and healthily.