Research On The Internal Control Of Real Estate Enterprises In China

Since the new century, along with our country economy further off, the real estate industry also braves and developments rapidly, countless real-estate enterprises are rising and being bigger and stronger. The development of the real estate industry is not only related to residents’ basic needs, but also to the healthy development of the national economy. According to statistics, at present, there are more than80,000enterprises engaged in real estate development in our country, which provide jobs for more than2million people directly. With the influence of the related industries such as property management, house intermediary, we can say that real estate enterprises should be regarded as one of the pillars of national economy. Therefore, whether the management is efficiency and internal control of real estate enterprise could guard against risk effectively or not, not only affect the enterprise’s own development, also affect the overall level of economic development in China.Real estate enterprises have characteristics of business object not mobility, business operation activities of the capital intensive, service business, and these features determine the development of real estate enterprises are more susceptible to natural conditions, economic factors, policy guidance and the limitation of management level, thus face greater internal and external risks. Especially after the outbreak of the financial crisis in2008, the global economy has not yet bottomed out, still being weakness, and in recent years, more and more severe national macro control also makes real estate enterprises faced with greater risks and pressure to survive. Under such a severe situation, strengthening internal controls, improving the ability of risk prevention and response appears extremely urgent and realistic to our country real estate enterprises. Therefore, in this paper, on the basis of related research at home and abroad, combined with the characteristics of the real estate industry in China and the present development situation, the internal control of our country real estate enterprises is studied.In this paper, in the view of the five elements of internal control, the main existing problems of real estate enterprises’ internal control are analyzed. This research found that management of real estate enterprises does not pay enough attention to internal control, division of rights and responsibilities is not science, corporate culture and staff quality also needs to improve, so the internal environment is weak; in the aspect of risk assessment, the existing internal control system doesn’t highlight the financial and non-financial risks obviously; in terms of control activities, business process scattered, lack of capital centralized control, and imperfect real estate project budget system are common problems; the lack of integrate information system and clear communication channels between management and workers leads to poor internal information flowing and blocked communication; supervision to the existing internal control does not reach the designated position, and does not play its due effect.In terms of the common problems of our country real estate enterprises’ internal control, this paper puts forward building a comprehensive risk management as the guidance of the real estate enterprise internal control system. The specific measures include establishing a good internal control environment, establishing a comprehensive risk management system, establishing scientific real estate business processes, monitoring the real estate project on the dynamics, strengthening internal audit’s function of supervision and management, to improve and perfect the internal control system of real estate enterprises, in order to ensure the effective operation of internal control.