Research On Construction Of Risk-Oriented Internal Control System Of J Group Company

Enron, Arthur Andersen, WorldCom’s collapse shocked the world, and a series offraud events in China, for example YinGuangxia Zhengbaiwen and the CAO.Although these events occur for different reasons, but the fundamental reason is theinternal control imbalance. This makes the government and enterprises at home andabroad have to ponder the need to value and strengthen internal control internalcontrol, urgent to establish a sound and effective internal control system of norms.Although internal control by the unprecedented attention both at home andabroad in recent years, but the COSO framework and our country enterprise internalcontrol basic norms and guidance, only as a guiding theoretical framework, how touse the basic theory of internal control constructing suitable for enterprise’s owninternal control system, make it become the enterprise the management work of thefoundation, improve enterprise management level, effective way to various risks,enterprises are faced with the reality of the problem.The article adopts the method of literature and empirical studies, analysis the Jgroup company regulatory and management environment completed a risk orientedinternal control system design and construction. On the basis of the theory through thestudy of internal control, summed up the basic method for the construction of theinternal control system:"Four in One" methodology, is system as the platform, risk asthe oriented, process as the object, control as the means. Then based on five ministriesissued a specification and three sets guidelines, detailed analysis of the problems ofthe J Group Company’s internal control, and puts forward improvement suggestions tothese problems. Finally, from the company level and business level to build J groupcompany’s internal control of the body.