The Analysis And Melioration Of A Company’s Audit And Internal Control System

Chinese private enterprises are now playing an important role in China’s economy system, while they also facing all kinds of unknown challenges in the market competition. As private enterprises grow big and strong, their weaknesses such as low management skill, inflexible human resource polices, short life span, etc. The problems such as single property rights structure, supervision and communication leakage, blind expansion which could cause stagnant or even bankruptcy to private enterprises, are fundamentally caused by their lack of internal control. Therefore, the methods of internal control are stepping onto the stage. In the meantime, the government is also providing new policies for private enterprises to introduce internal control system.This thesis firstly states the background and the purpose of this research, and the recent condition of internal control theory, then takes an example of A company’s internal control problems, using the methods of Experience Summarization and Literature Study, to find out the problems of A company’s operation. From the Five aspects of internal environment, risk assessment, control activities information and communication, and internal supervision, the thesis analyses the fundamental causes of A company’s problems, thus to make modification of its internal control system.Internal control is a procedure of systematic, which involves each and every aspect of the whole company. A total supervision can lead to a perfect execution of internal and risk control, then to a benign development.