Institutions Internal Control Case Study

With the rapid development of our economy and society, institutions have begun to focus on improving the management efficiency. So internal control, which is so important to management activities is valued gradually. Ministry of Finance issued the "administrative institutions internal control standards (Trial)", which provides guidance for our institutions to build internal control system. The implementation process of all institutions will help them to improve their management level, and even improve economic and social benefits and better serve the community.In this paper, winter sports federation as an example, the entity’s internal control environment, and the status of specific business processes and problems are described. Subsequent cases were analyzed, first from the theoretical level describes major developments of the internal control theory, particularly the COSO internal control framework are briefly introduced. Internal controls related to the various business processes, this article focuses on the winter sports center’s contract management, physical assets, human resources, monetary funds, exchange funds, these five business processes were analyzed and the existing problems are found. Causes of the problem, the possible risks caused are analyzed. Combined with the relevant requirements specifications, suggestions for improvement are issued. This paper insists that the construction of the internal control system should be guided by the standards, a sound internal control environment should be established at the institutions level, the internal control of business process level should be comprehensively optimized to compliance with the relevant requirements, in particular the depreciation of fixed assets of internal control processes, monetary fund’s approval process, more specific recommendations for improvement are made.This paper argues that our institution’s internal control is still in its infancy, with the standards formally implemented, each institution shall develop practical internal control manual for the institution’s level, as well as in-depth analysis of all aspects of the business, to achieve the objectives of internal control.