Design Engineering SOE Internal Project Control

Our country has successively issued Basic Standards of Enterprise InternalControl and Enterprise Internal Control Practice Note so as to bring project controlinto the internal control system regulation of our country; however, either thetheoretical or practical field has severe absence in the studies of project risk andinternal control, and this absence would seriously affect the realization of the generalobjective for internal control, and would finally affect the realization of the enterprisevalue.The authoradopts normative study, induction and deduction, expert consultationand survey, comprehensively uses economics theory, management theory, financialaccounting theory and engineering theory, uses state-owned enterprise project as thetheme, and starts the study on the basic problem of state-owned enterprise project riskand internal control design.The author studies this problem as follows: after the combing and retrospect ofthe relevant theories and policies about risk management and internal control,combining the previous study results, the author thinks that the state-owned enterprisehas the special internal control environment, and the problem existing in it maybecome the source of each business risk, including the important business--engineering project. Based on the point of view, the author starts the analysis, anddiscovers that the problems existing in legal administration structure, organizationalsetting and power-responsibility distribution of state-owned enterprise may becomethe risk source of authorization and approval of each stage in the engineering project;the unreasonable setting of internal audit service, and the ineffectivesupervision ofexecution of project internal control may cause that the risk cannot be effectivelycontrolled in advance; the unreasonable human resource would become the source ofsevere risk of each key node of the engineering project, and it needs to be controlledat each link from recruit, position appointment to performance appraisal, etc.Based on the study result, the author adopts the internal control concept of risk guidance, proposes the policies and suggestions aiming at the internal controlenvironment problem of state-owned enterprise from the macroscopic view, designsthe internal control measures aiming at each risk point of the engineering project fromthe microcosmic view, and wishes to provide the direct and effective guidance of theadministration of engineering project of state-owned enterprise.