Research On The Internal Control Environment From The Perspective Of Corporate Culture

As the basic link of the enterprise internal control, the optimization and perfection ofthe internal control environment will directly influence the organization to achieve itsstrategic goal and corporate governance, but also play the inevitable requirement of theeffectiveness of internal control. The study of the internal control environment has alsobecome a hot topic in recent years. Among all those factors that could influence controlenvironment, corporate cultural is the integral part of control environment. Thus,cultivate effective corporate culture is the prerequisite of establish effective controlenvironment. So, it is necessary to discuss control environment issues on corporateculture’s point of view.First, this thesis illustrates the practical meaning control environment throughresearching and commenting related issues in this field. Second, summarize fundamentaltheories related to internal control environment and corporate culture. In addition, discusscontrol environment and corporate culture in great details about their content, history andrelationship between those two topics. Third, based on current control environmentproblems that existing in Chinese companies to analyze how the implement effectivecorporate culture and how effective corporate culture could create positive effects onother internal control elements. Based on my previous discussion, problems that Chinesecompanies should pay attention in daily operation could be summarized. Then, accordingto theories and my analysis, I set Jinan Qingqi Motorcycle Co.,Ltd as an example tofurther illustrate how internal control environment was implemented from corporateculture’s point of view in order to provide guidance for other Chinese companies. Thisarticle is designed for issuing opinions and findings on how to optimizing internal controlenvironment through cultivate effective corporate culture. This article’s scope limitationand future research directions or fields will be discussed at the end of this article.