Research On The Effect Of Enterprise Internal Control

Internal control is one of the hotest topics in academic field recently years, enterprises pay more attention to internal control system building, and put a lot of labor and resource into the internal control system building, but the result is not satisfied. With the development of internal control and the people’s understanding of internal control become rational, the internal control effect will be focused on. Based on self practical experience, do an analysis of internal control effect, it is recommended that internal control effect should be considered as one of important factors during enterprise internal control system building, in order to reach the internal control objective and to meet the need of enterprise development.Firstly, the thesis introduces the background and significance to chose this topic, outline the internal control development in home and abroad. Secondly explain the relationship of internal control and management based on cybernetics, according to the issues coming from practice, the viewpoint of internal control effect is brought forward, correct the general mistaken sense that internal control the more is the better, and this is also consistent with the corporate aiming at maximum profit. Thirdly intoduce some factors that affect the internal control system building and effect, internal control is dynamic, should be set up based on enterprise actual status, no a internal control system can be appropriate for any enterprise. The same internal control in different enterprise, even in different period of the same enterprise, its effect is different.Combined with corporation A practice, analyse the root cause of internal control issues,for example the management quality, trust in IT system too much and implementation not enough. All of these affect intenal control effect. At present internal audit has its limitation, it focuses on if lack of internal control and how internal control implement, pay no attention to internal control negative effect. Based on practice case to analyse internal control negative effect. Finally based on the principle of risk assessment and prevention, cost-benefit theory, to build a internal control effect evaluation model and explain it with example. From this model, we can learn internal cntrol effect should be consider in internal control system building, and this is consistent with the enterprise goal to pursue the maximum profits.