Study On The Construction Of Harmonious Internal Control Environment Of State-owned Enterprises

Since2002, the United States has promulgated the Sarbanes-Oxley Act, the final rule, Auditing Standard No.2-An Audit of Internal Control Over Financial Reporting Performed in Conjunction with An Audit of Financial Statements and Auditing Standard No.5-An Audit of Internal Control Over Financial Reporting that is Integrated with An Audit of Financial Statements. The main role of these laws is to respond to some problems in capital market such as the financial fraud, false information disclosure and so on. Besides, we can easily find that the internal control is the tool to solve the problems mentioned above through the accounting practice. Therefore, not only internal control becomes more and more important, but also a worldwide upsurge is presented in enterprises establish and internal control improvement. At the same time, we could forecast that it is a key to deepen and perfect the internal control construction in the nearly future.In2008, China has also successively promulgated the basic norms of internal control and related guidelines, which reflects international synchronization consistency under the construction of internal control of our country and is a new milestone in the history of our country’s internal control. The state-owned enterprises as an important lifeline of the Chinese economy strengthen the construction of internal control, which is clearly the trend of the times. The control environment as the first major factor of internal control is the tone of the internal control which will affect the knowledge and attitude of the internal control of staff. And a good control environment is the basis for implementation of effective internal controls. In the background of world multilateral interest win-win, study of internal control environment based on harmonious social development concept apparently is a new idea. This article analyzes the status of the internal control environment of the state-owned enterprises and find discordant performance and the reasons for its existence to construct the state-owned enterprise harmonious internal control environment system which makes the organization run hormonally and enterprise value and staff interests achieve a win-win situation.This thesis consists of the following six parts:The first part proposes the background, significance, relevant literature, research ideas and possible innovation and limitations of this paper.The second part introduces the theoretical basis of this study, including the cognitive theory of the environment, internal control relevant theory providing substantial theoretical basis for follow-up study of this paper.The third part analyzes the status of the construction of the internal control environment of state-owned enterprises in China, and discovers the existence of discordant performance and underlying causes.The forth part introduces some ideas about the construction of the internal control environment of state-owned enterprises based on the harmonious view, including the necessity and the basic idea of building a harmonious internal control environment of state-owned enterprises.The fifth part builds the system of a harmonious internal control environment of state-owned enterprises. The system designs like a bridge, which is protected by hardware environment layer and soft environment layer and eventually realize the harmony and unity of hard and soft layer of the internal control environment.The sixth part introduces the future prospects of this study on the internal control environment of state-owned enterprises and research inspiration.The main innovation of this thesis is presented in the following aspects.Firstly, the concept of harmony is introduced into the construction of the internal control environment of the state-owned enterprises, and as the main line runs through into the system of internal control environment of state-owned enterprises.Secondly, the paper boldly learns the concept of logical thinking of Girder Bridge constructed in engineering mechanics, a useful System attempts to the construction of harmonious internal control environment of state-owned enterprises.Thirdly, in the course of the study, natural science research is applied for the humanities. And some useful theory such as systems theory, cybernetics, information theory and other theories is introduced in this paper. In particular, through test mode of audit methodology is referred and the effectiveness of internal control software environment layer is put forward.