MN Company Internal Control Evaluation And Improvement

This paper indicates, from a subjective view, this phenomenon that the cases of state executive corruption increase in recent years, is correlated with some top managers’depravity, but from objective angle, it also reflects that some state-owned enterprises fail to establish a good internal control system. In another word, the internal control system does not work.Recent corruption case of the MN company executives is also the result of enterprise’s internal control failure. The author, through drawing lessons from the new COSO report issued in1992, analyzes the case from the five elements of internal control angle, namely the control environment, risk assessment, control activities, information and communication, supervision, and gradually explores why and how Inner Mongolia power company executive corruption cases happened. At the end, the author makes an initial attempt to draw lessons from international enterprise risk management method for the Chinese enterprises and put forward setting up the internal control mechanism, which incorporates the internal control audit into the company’s annual budget auditing procedure.Effective internal control can help the company face the hard challenge and improve management ability, demonstrating how important it is to establish an enterprise’s internal control system for long term development.