The Research On Constructing Internal Control System Based On Risk Management Of Y Company

Recently, with the acceleration of economic globalization and market integration,the domestic market has presented an urgent need for following the world trend, which confronts Chinese enterprises with dramatic changes in the business environment. Stronger competition and more latent risk has attracted a great deal of attention to strengthening the risk management. In 2004,“Enterprise Risk Management—integrated framework” issued by COSO indicates that the internal control of foreign enterprises begins to involve risk management. In China, the ministry of finance issues “Enterprise Internal Control Basic Norms ” in 2008, and then “ Enterprise Internal Control Guidelines ” in 2010 which is focused on risk prevention and fraud control. The two documents lay a foundation of internal control’s normative system for domestic enterprises. Although related regulations and guidelines have led to moderate improvements in domestic internal control, many enterprises still suffer from their lack of the sense of risk management and a rather perfect system of internal control in the actual operation. In this article, the case method is adopted to study how to optimize the internal control system of Y company through risk management.This article is divided into six chapters.The first chapter is summary, which puts forward the research significance, and determines the research content and framework.The second chapter is literature review and theories overview.The third chapter is overview of internal control and risk management theory:Firstly, the concepts of internal control and risk management are defined.Secondly, the evolution process of the related theory is described.And then the relationship between internal control and risk management is analyzed and discussed. The last part puts forward internal control system based on risk management and internal control.The forth chapter is status analysis of Y Company ’ s internal control and problem by the questionnaire survey and interviews.The fifth chapter is Case analysis. The author optimizes the internal control system from two aspects ofenterprise management and business cycle and analyzes the implementation effect. The sixth chapter is conclusion and deficiencyOptimization on the internal control system imposes a positive impact on optimization measures for Y company’s production and operation. This study is of great practical significance and application value. We hope that companies of the same type can acquire from this paper guidance to the construction of internal control, which can reduce the building cost of the internal control system.