Research On The Internal Control And Evaluation Of The Rural Private Enterprises

With the reform of economic system, China township enterprises has experienced the germination period and the rapid growth period. Now these enterprises have become very important in the county economy and have served as the important role in China ’ s steady economic growth. However, according to the National Association of industry and Commerce survey, the average life expectancy of the China township enterprises was only two point nine years which was only ten percent of the average life expectancy of Japanese enterprises’ average life and one-thirteenth of American enterprises ’ average life expectancy. China township enterprises vitality so fragile. The most important reason was the weakest enterprise’s internal control, therefore how to highlight the internal control in these enterprises operates was the key to sustainable the continuing development in the enterprises’ work.This paper was based on the COSO theory(committee of sponsoring organization) which was combined with China’s Ministry of Finance and other six ministries in 2008 June jointly issued the "basic norms of internal control" and so on a number of internal control in our country. The research in the paper was based on the qualitative and quantitative analysis and would give an analysis on the current situation of China township enterprises about internal control by using the analytic process and efficacy method, the internal control was divided into five indexes: the internal environment, the risk assessment, the control activities, the information and the communication and internal supervision. The index also included a number of factors and each factor also was divided into a number of grades. Different weights were given by according to the important degree of each factor in each index and the index in internal control. And then the model of mathematical analysis was built to evaluate the internal control of China township enterprises from local to the overall comprehensive analysis of the current situation of China township enterprises internal control. The method was accurate by using the mathematical language to describe the extent of the current township private enterprises internal control.Finally, learn from the successful experience of internal control in China and abroad and by combing with the way of operation and management of the private enterprise of our country villages and towns, the perfect suggestions and countermeasures of internal control of China township enterprises was timely put forward to hope to make its own contribution to the development of the town of private enterprises.