Research On Internal Control System Of FAW Car Co., Ltd

Internal control is a process implemented by the management and staff to improveoperational efficiency, and ensure information true and reliable, and protect the assets safeand integral, and promote effective compliance of laws and regulations, and accomplishthe development strategy. Internal control is also a management process of clearresponsibilities, strong checks and balances, dynamic improving. There is no doubt thatinternal control is very important to the enterprise. With the advent of economicglobalization, the socio-economic environment is rapidly ever-changing; the competitionamong enterprises is fiercer and fiercer, and the business risk is higher and higher. It is anurgent for the enterprises to strengthen management and improve the internal controlsystem.This paper takes FAW Car Co., Ltd. as a case to analyze the current situation ofenterprise internal control system， which will reveal the problems in enterprisemanagement and operation of internal control system. The emphasis of the paper lies inanalyzing the causes of the problems in the implementation and puts forward some feasiblesuggestions to further revise and reform.Starting from the background of China’s automobile industry, this paper analyzes thecurrent situation of internal control system (mainly from the overseas research situationand domestic research situation) to sum up the overall research in internal control system.The purpose of the paper is to present the readers the overall external environment of astate-owned enterprise, FAW Car Co., Ltd.The paper focuses on the basic features of the internal control system of state-ownedenterprises with Chinese characteristics, which is based on the analysis of China’s basicnational conditions and the internal control system adopted by state-owned enterprises. Afurther understanding of characteristics of the internal control system and externalmanagement environment of FAW Car Co., Ltd. will be presented in the latter parts.The core of this paper is to find out the problems, analyze the reasons and put forwardsome suggestions. The former parts sum up the existing problems in enterprise internal control system and list the related internal function mechanism in detail. After analyzingthe existing problems and risk points of internal control system in FAW Car Co., Ltd., thispaper puts forward some effective measures to further revise and reform. The focuses ofthe reform lie in the functional performance of the board of supervisors and working staff,as well as the perfection of corporate governance system, which are also the difficultpoints.In a word, the purpose of this paper is to solve the problems in enterprise internalcontrol system in practical operation. The relevant theories used in the analysis of FAWCar Co., Ltd. are as followed: corporate governance, modern enterprise management, guideand appraisal of internal control system. The analysis can be applied to other relatedenterprises, which is of certain theoretical and practical values.