Case Study On Internal Control System Based On SLUCKY Company

Enron, WorldCom, and other world-renowned company’s financial scandal broughthuge economic losses to the enterprise; therefore, the internal control was concernedmuch more than before around all over the world. In this context, the United States issuedthe SOX act and implemented the COSO report, and then the governments of the worldalso strengthened enterprise internal control. China’s relevant departments and theoreticalcircles attach equal importance to the problem of lack of internal control. Hence in2008China’s Ministry of Finance and other five ministries jointly issued the "basic norms ofinternal control” and the Enterprise Control Guidelines in2010which indicated theintroduction of the internal control system norms of China. Practice has proved that thedevelopment and implementation of a unified system of internal control is conducive tosaving enterprise management costs, and reduce risk; however, our study of the internalcontrol system norms just stay about the relevant theory and information disclosure, butrarely for in-depth study of the design and optimization about the internal control system.There are no clear and guiding suggestions of the internal control system in China’s listedcompanies either so that the work about it is most mere formality floating on the surface.In view of this, it is necessary to study formation and its evaluation of internal controlthen form operable internal control system to further improve the internal controlconstruction.This paper is based on SLUCKY Enterprise internal control system which is beforethe introduction of the Internal Control Standards. Using the method of combining ofnormative analysis and field investigation analyze SLUCKY internal control status andissues from the five elements of internal control which is the internal environment, riskcontrol, control activities, information communication and supervision, and put forwardreasonable and workable design and operation of the internal control system.This study for the internal control system in the paper is especially for the specific,and in-depth critical control points of internal control. There is theoretical significance fordeepening of the internal control studies. At the same time, the design of the internalcontrol system in this paper has a very important practical significance for strengtheningSLUCKY company management, maintaining its property safety, and improving theeconomic efficiency of the company.