Research On Internal Control Of Shanxi Electric Power Company

The core of modern enterprise system of corporate governance and internal control. Goodcorporate governance and internal controls are necessary conditions for enterprises to enhancecompetitiveness and improve business performance, is to protect the owners and otherstakeholders, to ensure an orderly modern market system, and efficient operation of themicro-foundation. Corporate governance is to ensure the functioning of the internal controlsystem of the premise and foundation, the internal control system in corporate governance inthe position of internal management controls.2001，United States-since the "Sarbanes-Oxley Act" enacted around the world pay moreattention to the construction of internal control, internal control standards have been releasedor guidelines.2008-2010, the Ministry of Finance and other five ministries have jointly issuedthe "basic norms of internal control" and supporting guidelines and principles defined thebasic framework of internal control systems. In May2012, around the central businessmanagement to improve in activities under the SASAC issued "on accelerating theconstruction of the central business matters related to the internal control system," whichrequires the central enterprises strengthen organizational leadership, a work program toestablish orderly, covering a comprehensive internal control system, and to take measures toensure effective implementation.Over the years, Shanxi Electric Power Company’s operating efficiency and managementlevel gradually increased, but the fragmentation of the internal control activities, and there isthe old concept, structural defects, and cultural backwardness, poor supervision and otherproblems and deficiencies, weak internal controls also affected the company’s overallmanagement level. Based on internal research SEPC full control of the status quo, targetedproposed corrective measures, combined with the practical management of state-ownedenterprises, the company proposed to establish an internal control system of the overallprogram. Shanxi Electric Power Company shall, through the construction of excellentcorporate culture, enhance the overall quality of staff to create a good internal controlenvironment, a complete internal control framework through the improvement of corporategovernance structure and organization, by strengthening the executive power to ensure theimplementation of the internal control system, internal supervision by supporting theimplementation of the internal control measures to provide protection..