Study On Internal Control Of S Company

In order to help firms to improve their efficiency, decrease risks, and ensure the reliability of financial reports, the Committee of Sponsoring Organizations of the Tread way Commission established internal control framework in 1992. Sarbanes-Oxley Act requires that public companies disclose their reports of internal control effectiveness every year, which makes COSO framework a guideline for enterprises’internal control. In 2006 Shanghai Stock Exchange established《Corporation internal control guidelines for listed companies in Shanghai Stock Exchange》,which encourage corporations evaluate their internal control effectiveness by internal control committee or independent auditors. Meanwhile Shenzhen Stock Exchange also relies 《Corporation internal control guidelines for listed companies in Shenzhen Stock Exchange》 July 15th,2006 China corporation internal control standard committee was found and established 《The basic norms of internal control》 in 2008.Firms in China have built up basic internal control structure which suits their specifics, with nearly 10 year’s development. This paper starts from the analysis and evaluation of control environment, risks, control activities and internal auditing. Then pinpoint the current problems in the internal control situation of S company. Finally provide improvement according to the problems.This paper is made up of five chapters. First part is an introduction for the current research and framework of all paper. The second chapter mainly describes the definition of internal control and related theory. The third part of this paper analyzes the current internal control situation of S company and the weaknesses of internal control in W company, including the problems in control environment, authorization, feedback mechanism and internal auditing. The fourth chapter provides the improvement suggestions and resolutions for internal problems in S company. The last chapter describes some limits of this study and the future research direction.The purpose of this study is to help S company build up an effective internal control structure, ensure its efficiency of operation and increase the strength in market competition. This paper can also be a guide for enterprise internal control improvement.