Research Study On Risk Control System In China’s Private Company

With the bankrupt of Enron and WorldCom caused by fraud, the government andinvestors find that the internal control has become more and more important to thecompany. In2002, the united states promulgated the 《Sarbanes-Oxley Act》. The《Sarbanes-Oxley Act》 required the listed companies must report the internal controlsituation to the government and investors. And also must hire accounting companies toaudit the companies’ internal control. From the《Sarbanes-Oxley Act》,internal control audithas been determined by law in unites states.In China, although the beginning of internal control is later, the research of internalcontrol has a rapid development in recent years due to the increase number of financialfraud in listed companies. In2008, Ministry of Finance, Audit Commission, ChinaSecurities Regulatory Commission, China Insurance Regulatory Commission, ChinaBanking Regulatory Commission jointly issued the 《Basic Standard for EnterpriseInternal Control》,and Symbolized that the internal control has been established in China.Base on the great attention on internal control in the world, this thesis chose aLarge-scale private enterprise in shanghai and analyzed it’s internal control to find someweakness from three key aspects for running business, which is fund, purchase and sales,and propose some solution to improve the weakness.