Research On The Internal Supervision Mechanism Of Z Company

From the eighties,we began to study the internal control issues and achieved fruitful results. May 22,2008, the Ministry of Finance, the Commission, the Audit Commission, China Banking Regulatory Commission, China Insurance Regulatory Commission jointly issued the "basic norms of internal control" (hereinafter referred to as the "basic norms"), and on April 15,2010, they issued "business internal Control application Guidelines No.1-organization "and other 17 application guidelines. The issuance of "Enterprise Internal Control Evaluation Guidelines" and "Enterprise Internal Control Audit Guidelines" marked that the integration of advanced international experience in Chinese internal control standard system has been basically completed.The "basic norms" proposed that internal control included five elements (internal environment, risk assessment, control activities, information and communication, internal supervision).In this,internal oversight is further control of internal controls, and it provides reasonable assurance for the continued effective operation of internal control systems.The object of this paper-Z company, is Chinese Railway Corporation to carry containers career leading enterprises, directly under the China Railway Corporation company.The company’s main activities include container and tarpaulin repair, leasing; International Container Intermodal;international iron sea transport and freight forwarding.From the view of company size and industry position, Z company has the domestic leading level.However, the lack of internal controls has seriously hindered the pace of the company to become a world-class container companies, especially in the new situation of the reform of railway management system, they urgently need to improve the internal control system to strengthen internal oversight.In this paper, we start from the railway container industry, internal control as a starting point, the Z’s as practical case,and point that there are many problems in this:Z’s internal oversight mechanism is not perfect,leaders do not pay attention to internal supervision, professional competence and subsequent cultivation of Z internal auditors need to be strengthened and resolved, the high cost and general quality of internal oversight,and so on.We analysis the company’s internal oversight model and bring forward the following improvement program:improve internal oversight mechanisms leadership; revise and improve internal monitoring system; strengthen the audit team building and enhance audit capabilities; broaden the area of oversight and innovative methods of supervision; strengthen internal supervision and evaluation and use results-oriented.