The Research About Internal Control Audit Of M Company

Since the late20th century, there have been many fraud cases caused by ineffective internal control in listed companied in China. These cases not only damaged investors’ interests, but also brought adverse effects to the stock market. From a global perspective, the collapse of Barings Bank in Britain and the scandals of Enron and WorldCom caused more and more countries to recognize the importance of internal control and the necessary of internal control audit by independent3rd parties. In July2002, America Congress issued<Sarbanes-Oxley Act>. It is a very important act that has positive effects on listed companies’internal control in various countries. Meanwhile it is also be encouraged to be adopted by current medium and large sized non-listed companies and other enterprises. As an action outline and guide to enhance the internal controls of enterprises, the Guidelines establishes a standard framework on figuring out problems like multiple leadership, different requirements, etc. It is of significance for enterprises to enhance and regulate their internal controls, upgrade business operation and management level, increase risk control ability, promote healthy, sound and sustainable developments and ensure capital security.With M Company as study case, this paper analyzed the practical application of internal controls in an enterprise and put forward corresponding resolutions on problems through the internal control practice, such as how to improve internal control conditions, how to enhance the implementation of internal controls, how to improve crisis treatment mechanism, how to apply IT through the internal controls and how to advance enterprise internal supervisory system, etc.Based on the above study, the paper explored the way of strengthening enterprises internal controls with aiming at providing with certain references and consultations for state-owned enterprises on their advancement and improvement of internal controls.