Case Study Of Internal Control In JHC

Along with the introduction of state policy for the reform of state-owned enterprises and the more and more perfect market economy system, whether enterprise internal control system can be effective is particularly important in the fierce business competition.It also become a problems which needed to resolve eagerly the current management. Good internal control system can help managers control and supervise daily management and financial affairs and reduce risk. However, some issues such as low efficient in operation and management,accounting information distortion,serious loss of state-owned assets still exist in state-owned enterprises.Restriction in the internal control system is the path to maintain the orderly development of market economy. Internal control system must along with internal regulations in order to maintain the healthy development of the enterprise. JHC, analyzed in this article, is a oversize cooperation of state owned, during the process from its prosperity to decline,it reflects many common problems that exist in the internal control system of state-owned enterprise in our country, and it has a strong reference to the other state owned cooperate in our country.This paper adopts the method of case analysis and take JHC as the study object. Based on the relative theories and by analyzing the existing problems of internal control in the process of operation before its bankruptcy. This paper come to the conclusion that serious problems of the internal control is one of the most important reasons lead to the bankruptcy of JHC. This paper reveals that internal control system plays an vital role to ensure the normal operation of enterprise and a powerful internal audit supervision mechanism can help to recognize and prevent the behavior of disruption of normal management order.This paper is divided into four parts.The introduction part mainly elaborates the research background,research significance and the research purpose of this article,also it introduces the research methods and the framework of this article.The second part is divided into three chapters.The first chapter presents the basic operating conditions of JH cooperation.The second chapter introduces the basic situation of internal control in JHC. The third chapter present three cases that include some problems which can reflects the internal control problems in the process of enterprise management. The third part is based on the second part, it further analysis the reason to the problems mentioned above, put forward the relative theories, and analysis the detail reasons to the problems according to the theory. Finally, this paper present the impact the problem put on to the enterprise. The last part is the revelation and conclusion of the three cases. The conclusion part summarizes the main problems of internal control in JHC and its reason, revelation part put forward some suggestions and revelations that other enterprises should keep focus on.