The Appraisal On Effectiveness Of Internal Controls Of Liaoning Northern Environmental Protection Group

The Basic Guidelines for Internal Controls of Enterprises(hereinafter referred to as "Guidelines) issued by Ministry of Finance on28June2008jointly with China Securities Regulatory Commission, National Audit Office, China Banking Regulatory Commission and China Insurance Regulatory Commission has been put into practice firstly in listed companies since1July2009. Meanwhile it is also be encouraged to be adopted by current medium and large sized non-listed companies and other enterprises. As an action outline and guide to enhance the internal controls of enterprises, the Guidelines establishes a standard framework on figuring out problems like multiple leadership, different requirements, etc. It is of significance for enterprises to enhance and regulate their internal controls, upgrade business operation and management level, increase risk control ability, promote healthy, sound and sustainable developments and ensure capital security.The Guidelines has defined and clarified the contents, objectives, principles and elements of internal controls. It drew lessons from the framework of COSO Internal Control Five-Elements; meanwhile it also absorbed the essential of Risk Control Eight-Elements. As an innovative document, its establishment indicates that Chinese enterprises internal controls regulatory system is approaching to the international standards.With Liaoning Northern Environmental Protection Group as study case, this paper analyzed the practical application of internal controls in an enterprise and put forward corresponding resolutions on problems through the internal control practice, such as how to improve internal control conditions, how to enhance the implementation of internal controls, how to improve crisis treatment mechanism, how to apply IT through the internal controls and how to advance enterprise internal supervisory system, etc.Based on the above study, the paper explored the way of strengthening enterprises internal controls with aiming at providing with certain references and consultations for state-owned enterprises on their advancement and improvement of internal controls.