Research On The Internal Control Environment Of China Railway Corp

The internal control is necessary for corporate governance in the process of management, and the evaluation of internal control can help companies find whether the Internal control is one of the most important management tools. Enterprises’operation and development can be effectively carried out under the supervision and management of internal control. Internal control environment is the basis of internal control. Only by building a good internal control environment to make enterprise’s internal control system in good operation can provide continuous power for Enterprise and enhance the core competitiveness of enterprises for the development of enterprises.Railway is the infrastructure and basic industry of the national economy. Since the reform and opening up, China’s railway transport business development is fast. In recent years, the reform of the railway system is going like a raging fire. The Ministry of Railways is split, and the Railway Corporation was established, undertaking the Ministry of Railways of the original business functions. This reformation has taken a key step for a railroad career breaking the state monopoly to market. In order to become the real main body of market, Railway Corporation is necessary to establish a modern enterprise system. But due to the characteristics of the industry——railway network and public welfare, the influence of external legal environment, and its traditional management conception, China Railway Corporation has a congenital deficiency in the construction of the internal control environment. And company still exist many defects in the internal control environment. Thus, we need to take further effective measures to strengthen its construction.This paper first reviews the development of internal control theory, summarizes the related research about internal environment and the internal environment of railway transport. Then according to the "basic norms of internal control", we analyzes Chinese railway company internal control environment combining with the inherent characteristics of the enterprises of railway transportation in our country, from the five aspects of organizational structure, human resources policy, enterprise culture, basic management and external environmental factors. And we pointed out that since the establishment of the company there are some aspects need to improve in the internal control environment construction progress. In the fourth chapter we put forward the corresponding proposal to improve the internal control environment of the China railway strengthen the company’s management. Finally we give the conclusion and hope that it will be useful for the construction of the internal control environment of the railway corporation.