Dalian Marine Fishery Group Company Internal Control Research

Internal control refers to the rigorous and relatively completed system on the basic of theprofessional management system of board of directors, management layer and the wholestuffs in the enterprises. Its main purpose is to provide secure and completed economicresource and accurate and reliable accounting information, to coordinate economic actionsand control economic activities, to utilize the relation and restriction to coordinate thebenefit-based relationship between them in order to form the internal institutions whichdomain the role of control function. And the internal control is relatively independent indefinition and intension.Internal control refers to a kind of interacting business organization form and laborsystem of responsibility division that established in the economic activities of economic unitsand organizations. The purpose of internal control is to improve management and economicbenefit. It is engendered with needs of strengthening economic management, and developed&perfected through the development of economy. The earliest control mainly focused onprotecting the safety and integrity of property, ensuring the correctness and reliability ofaccounting information, and was committed to control from such perspectives as propertymanagement, strict procedures, and review enhancement. With the development ofcommodity economy and the expansion of the production scale, the economic activities arebecoming increasingly complicated, and the former internal control gradually develops intomodern internal control system.At present, the internal environment of domestic enterprises is defective, and theinternal control system is still not perfect. The rapid development of market economy haspushed the integration and progress of domestic and overseas internal controls, made ourenterprises confronted with both development opportunities and at the same time thechallenge of new management mechanism. Based on this background, this article willresearch internal controls though combining the internal environment, review the internalenvironment and internal control frame and the dominant spirit of COSO according to riskmanagement as the angle of view. By interpreting the content, basic characteristics, andpurpose statement of the internal controls, the paper analyzes the present situation of internalenvironment and internal control present situation and the existing problems in Liao Yu Ltd.And by combining the actual situation of the Liao Yu Ltd, the paper also tentatively putsforward several assumptions and ideas to improve the enterprise internal environment andperfect domestic enterprise internal control construction. In this paper, the author does a specific research on the internal controls in Liao Yu Ltdcombined with the internship experience therein, and on the premise of the developmentprocess of internal controls at home and abroad and regard internal controls in state-ownedenterprise as its research direction.The frame of this article is as following:Chapter one is the introduction, in which the background and research purport will beexpounded, and then the pertinent literature of internal controls theory of domestic andoverseas be narrated, finally the research methods and details be specified in the end.Chapter two is the introduction of basic theory of internal controls. This chapterincludes four subsections: subsection one is to describe the definition, content, basiccharacteristics, objectives and methods of internal controls. Subsection two is to describe thedevelopment history of internal controls theory. Subsection three is to describe the internalcontrol structure of COSO and the internal control elements of domestic enterprises.Subsection four is to describe the evaluation of the internal controls.Chapter three is the introduction of the general situation and internal control status ofLiao Yu Ltd. First of all is summarizing modern fishery system, then identifying the basiccharacteristics of modern fishery, and following elaborating domestic fishery developmenthistory and main mode. The fourth part is to introduce the basic situation and framework ofLiao Yu Ltd. And finally, the paper will analyze the internal controls status of Liao Yu Ltd.Chapter four is to comprehensively analyze the problems of internal controls of Liao Yu Ltdfrom five points, including organization structure, personnel control, financial system, costaccounting and information circulation.Chapter five is to improve internal control measures of Liao YU Ltd. Firstly, there arefive perspectives to improve internal control environment including using the reasonableorganization structure, setting up a development strategy, rational utilization of humanresources, perfecting enterprise culture and establishing social responsibility. Secondly, thepaper will expound the overall planning of comprehensive risk assessment. Next, the paperwill describe the establishment of perfect and standard control activities. And then, the paperwill introduce how to strengthen information exchange and communication. Finally, therewould be a comprehensive implementation of enterprise internal supervision.Chapter six is conclusions and recommendations. The paper will put several points tooptimize enterprise internal control to construct and perfect internal controls physicaleffectively in the future development.