Research And Improvement Of The Internal Control System In XXTrust Limited Company

The internal control is one of the topic discussed quite much by our country enterprise management circle and the financial theory circle in recent years. Whether the CBRC, CSRC, CIRC, the Ministry of Finance and other government departments or certified public accountant, auditor industry association and the enterprise managers, they are very concerned about the research field of internal control. All parties has been working hard to formulate rules of internal control for the enterprises in China and duly put forward the construction of the internal control system requirements. But up to now there are very few systematic research for the internal control of trust industry in our country and at the same time, systematic and specific industry norms or standards haven’t been promulgated. This article takes XX Trust co., LTD I am working in as the researching object; first it reviews the present researching situation in domestic and abroad, expounds the theory of internal control;then analyzes the current situation of the company’s internal control based on the five elements in internal control, trying to find out the problems in company’s internal control; finally puts forward suggestions on improving the company’s internal control based on the five elements of internal control, and strive to make the internal control in the company play a constructive and prevention role, so that XX Trust co., LTD may develop healthily, rapidly, sustainably in this intricate economic society. This paper can be divided into five parts, the main contents are as follows:(1) Describes the research background, research significance, research methods and explains the research framework of this article.(2) Introduces the present researching situation in domestic and the foreign country, the theoretical basis of internal control(cybernetics, information asymmetry, principal-agent theory),and then discusses a concept framework of internal control.(3) Analyzes the current situation and problems of internal control in the company.(4) Figures out the solutions to improve company’s internal control. Puts forward some countermeasures and suggestions on how to improve the internal control of the company in view of the present situation and problems analyzed, bringing the internal control into full play.(5) Summarizes the main conclusion and limitations in this paper. In conclusion, first of all, the internal control environment is the basis of internal control, the XX trust company’s internal control environment still remains to be further improved. Secondly, the risk assessment is an important part of internal control, as the company should improve its risk assessment management system, as well as the overall planning and the overall framework to formulate a set of risk assessment. Thirdly, the control activities are the specific measures of internal control. Among the five elements, internal control is the most direct factor that affect the enterprise value, the company shall establish its internal control system at the first place in case to handle all kinds of risk exposure. Fourthly, information and communication is a very important guarantee for the implementation of the internal control. The company should actively as well as effectively to develop both the internal and external communication. Last but not least, the internal supervision is also a guarantee of the internal control. The companies have to develop an effective and comprehensive supervision system, and based on the actual situations of the company to setup the specific internal supervision procedure. On the other hand, the limitations, due to the imperfection of country and the industry standard, it will finally make the analysis and countermeasures insufficient.