Research On Evaluation Of Internal Control Of State Grid Corporation Overseas Business

Internationalization is an important way to promote the development of the State Grid Corporation and the only way to build a world-class power and construct of a world-class enterprise. Following the investment in the Philippines, Brazil, Portugal, Australia, the State Grid Corporation look forward to invest in mature markets in Europe, then comes the success of the Italian power company investment. The State Grid corporation strategic layout in the world and develop the market stable and steady. As at June 2014, Stare Grid Corporation has more than 23 billion dollars overseas assets, the investment return on overseas operations is far beyond domestic level. With the rapid development of its’ overseas operations, improving internal control system and the efficiency of internal controls are more important.Combined with objectives and requirements of the State Grid Corporation for the construction of the internal control system, this paper establishes the evaluation index system in both enterprise level and business level based on the theoretical foundation of "basic norms of internal control" and supporting guidelines after an overall introduction and basic analysis on the internal control system. The enterprise level find the key risk points from the internal environment, risk assessment, control activities, information and communication, and monitoring and the business risks need to be monitored. Then in the business level, this paper establishes the evaluation index system of the State Grid Corporation overseas business. Due to the issue that evaluation object is difficult to quantify and the interaction between the indexes is hard to accurately define, this paper use fuzzy comprehensive evaluation based on AHP. First, establish a hierarchy model and give the weights of each evaluation index, then give a fuzzy evaluation about effectiveness of internal controls, then it implement a comprehensive evaluation on the effect of the company’s internal control system, and give an analysis of the results of the evaluation finally. According to the analysis results, make optimization recommendations about the internal control weaknesses of State Grid Corporation overseas business. This paper carry out the case analysis by giving qualitative analysis and quantitative evaluation about internal control effectiveness of the State Grid overseas business, which verify the effectiveness and reasonableness of the proposed evaluation model.