Study On Internal Financial Control System Of The XS Company

With the developing of the economic and the increasing of the competition between industries, strengthening the internal management to enhance the competitiveness is becoming an important weight for enterprises. In the company’s daily management, financial control activity is an indispensable part. So the system of internal financial control study design has become an important measure of the companies to enhance their strength and competitiveness. In this study, we use XS company for an example, through the company’s overall financial management analysis to develop in line with the development of enterprises internal financial control system.On the basis of the analysis of theory of internal control and financial management theory, the status of financial control study was conducted from XS company analysis, control theory based on the contents of the financial internal and analyzed from the company’s budgetary control, financing, investment, fund management, etc..so we can found the main problem for the company existing poor budget effects, weak financing, weak management of accounting, the lack of institutionalization. The reasons can be summarized as organizational structure is irrational, systems, and poor awareness of risk, and financial personnel quality is not high and so on.Based on the above analysis, the study according the reported of COSO to design the internal control framework from five aspects,the control environment, risk control, control activities, information and communication, and supervision, at last, we summed up the company internal financial control factors that should be considered for the company’s internal financial control system reference designs.Meanwhile, appropriate safeguards should be considered for the purposes of improving internal financial controls. Company organizational structure, staff quality and accounting systems and audit system corresponding should be improved for the implementing of the security company’s internal financial control system.As domestic investment and development company with a certain homogeneity in financial management, results of this study may also provide a reference value for the reference design of the system of internal financial control in the industry.