The Research On Internal Control Of X Province Electric Power Company

Electric power industry is a high-risk trade which is technology-intensive, capital-intensive, management-intensive. Trans-regional power supply and settlement, more diversified operations have produced a series of issues such as endless stream of business risk, rising management costs. In 2002, with the "Electric Power System Reform Scheme" coming out, electric power system reform started. Electric power companies need to respond to the increasingly competitive environment by improving their management level. As an important part of modern enterprise’s management, internal control has played an important role to conduct electricity enterprises in standardize accounting, asset security and maintenance, management risk prevention and effective management. Under the new reforms and economic background, to promote the development of electric power enterprises, maintain the safety of state-owned assets, it is an urgent need to establish a sound and strict internal control system in the electric power business.Based on the above background, this thesis started with research in the meaning and development of internal control, and described the status of internal control theory. It selected X Province Electric Power Company as a case, combined with the five elements of internal control, described the company’s internal control situation, based on that the thesis analyzed the internal control problems and made suggestions for improvement.The thesis was divided into five parts. The first part, mainly through the elaboration of the research background, significance, indicated the cause of selecting X Province Electric Power Company as research object, clarified ideas, identified research method and proposed the innovation and shortcomings of this paper with summarizing literature. The second part summarized the meaning of internal control, the development process of internal control theory at home and abroad, and provided a theoretical basis for the description of X Province Electric Power Company by introducing the theory of the five elements of internal control. The third part, while described the internal control status of the X Province Electric Power Company, highlighted its critical control point operations and business processes, thus raised issues and analyzed the causes. The fourth part, based on the issues raised in the previous chapter, put forward relevant solutions. The fifth part was the conclusion and prospect, which pointed out the paper’s research limitations and prospects.