Research On Internal Control Of Innovative Enterprise

Economic development and social progress led to the formation of internal controls, with the development of social and economic activities,internal control shows different characteristics. The enterprise internal control and economic management requirements change with the different economic activities of enterprise content. The enterprise competition will be increasingly fierce with the development of our country socialist market economy. With the reform of modern enterprise system in our country deepening, and business failure cases continuing to emerge in recent years,which are led by missing or invalid internal control,to study the effectiveness of internal control has become a concern in the circles of theory and practice. Because of innovative enterprises unique characteristics, enterprise competition is much more severe than general enterprises. Faced with complex and ever-changing business environment, innovative enterprises is more urgent than general enterprises to use advanced theory of internal control and to make internal control system of the enterprise more perfect,so as to improve the level of risk management and enhance the competitiveness of enterprises.Endless accounting scandals and senior management personnel frequent corporate fraud cases,make the internal control at home and abroad popular,which alarm enterprise internal control failure.In2008and2010the Ministry of finance, Securities Regulatory Commission and other five ministries promulgated basic norms of internal control and internal control guidelines,to construction of internal control system and ensure its effective operation which is placed in front of every enterprise. We Can say, that internal control is an important symbol of modern enterprise management. Innovative enterprise play a decisive role in guiding as the main force of China’s economic transformation and restructuring, in guiding the enterprises of our country’s future development. We can not let these vibrant business recommit the same error. A correct understanding of the internal control,the establishment of internal control system and ensure its effective implementation’s the key to China’s enterprises to seize the strategic opportunity,get rid of the subsequent economic crisis.This paper begins with the background faced by from the innovative enterprises,and puts forward the meaning of the research. Then analyse and summarize the current development of domestic innovative enterprises as well as the research status internal control research status choose Y company among innovative enterprises as the research object and conduct a case analysis, on the basis of investigation and analysis of the enterprise internal control. Through the five elements of internal control,ie control environment,risk assessment, control activities,information and communication and supervision from the company level,the paper describes the present situation of internal control of the company,then analyzes its defects. Then aiming at the described defects,put forward improvement measures. Because the related domestic research on internal control of this type of enterprise is nearly blank,hope to provide reference and support for innovative enterprises which will carry out internal control.