Case Study On Internal Control Of Family

For more than 30 years of reform and opening-up, family enterprises in our country have made remarkable achievements. They show vigorous vitality, and has occupied half of the national economy in our country. As a kind of important organizational form of the economy in our country, family enterprises are playing an increasingly important role in promoting competition in the market, solving employment and raising living standards. Family enterprises can often achieve a rapid development in short term with its inherent advantage. However, when they earn huge profits, at the same time, risk is concomitant. Family enterprises often can’t cause enough attention. In order to guard against the potential risks to the enterprises, the enterprises need to establish a sound system of internal control, which can support healthy and sustained development of enterprises. It seems more and more important in the background of that, our country are paying more and more attention to the internal control and risk prevention.In this paper, it analyzes the present situation of the Company S in internal control and the possible problems. This paper shows that the Company S exist the following problems on internal control: the internal control environment is poor; risk assessment mechanism is not perfect; control activities are not effective; information communication channel is not smooth and lacking of supervision, etc. To solve these problems, this paper combined with the five elements of internal control and put forward to build a good internal control environment, rebuild the risk assessment system, strengthen the control of key business, improve the communication efficiency and improve the supervision and so on. It also expounds the internal control framework implementation steps and evaluation system. By the above research, hoping to improve and perfect the internal control of Company S, improve the efficiency of management and increase the enterprise value. As a typical internal control research on family enterprises, it can be referenced by more family enterprises.