Internal Control System Design Of L University Logistics Based On COSO Framework

The pilot reform in socialization of China University Logistics started in1995,and then in1999was comprehensively promoted. In2006, the Ministry of Educationput forward the new reform direction provide services by the market, make choicesby schools, macroeconomic control by the government, self-discipline manage bythe industry&supervise by functional departments", which further deepen thereform of University Logistics. Since the reform in socialization of UniversityLogistics, logistics internal sources of funds more and more diversified. Sources offunds have been changing from the school single appropriation into the newstructure of mainly school appropriation with raising funds through multiple wayswhich is resulting in the situation of diversity of investment subject in logistic,diversification of economic nterests, multi-level financial work&complication ofthe internal management. It is necessary to strengthen the internal controlsconstruction in University Logistics on account of all sizes of frequent corruptioncase in recent years.Internal control is always the system foundation of normal running for allorganizations and agencies. It is the control system to guarantee the unit accountingquality, to protect the security&integrity of the assets, to ensure the implement ofthe relevant laws, regulations and rules. It is also an efficient way to resist externalrisks, to prevent financial fraud, to improve management performance&to achievesustainable development.This paper, based on the theory of COSO integration framework, combinedwith the internal control policies and regulations of China, taking internal controlconstruction in the entity in University Logistics of L University as an example,using a combination of theoretical and empirical methods, through the research&analysis of the existing internal control system, is pointing out the existing problems.With the theory of COSO integration framework, analyzing the principle and methodof logistical internal control system construction of L University, the focus of this paper is to design the internal control system of L University in five aspects: controlenvironment, risk assessment, control activities, communication&monitoring; andto apply the new internal control system into the work; to analyze and evaluate theobstacles in the application of internal control system, and then put forward thestrategy of sustained correction.