A Study On The State-owned Enterprise Internal Control Evaluation

As the pillar of the national economy,state-owned enterprise plays a considerable role in the development of the socialist market economy to make it stable and durable and has very important significance to consolidate the socialist system in China. Perfect the internal control system is the effective tool to improve enterprise management environment, improve the economic benefit,and to prevent management risk.It also plays a very important role in long-term development of the enterprise to be stable and gradually become the important method to measure the enterprise,s internal management level.Appropriate evaluation is needed for the state-owned enterprise internal control to find the omission of enterprise internal control construction.The state-owned enterprise need to modify and perfect the internal control to make it play out of the internal control,s proper role.Based on the positive role of internal control and its evaluation,promoting the state-owned enterprises to develop better.Firstly,this paper discusses the connotation of internal control and the evaluation of state-owned enterprise,expound the basis of internal control evaluation and the theoretical basis.Secondly,it describes the framework of internal control evaluation,including internal control evaluation,s purpose, object, factors and principles.Third,using a state-owned enterprise as an example to discuss and analysis the problems that the state-owned enterprises faced about its setting and the implementation of its internal control system, On the basis of the internal control evaluation framework and relevant laws and regulations.Using AHP fuzzy comprehensive evaluation method to make an assessment of the internal control system based on the principles of internal control evaluation, and pointing out that the weak link that we need to put forward some relevant suggestions, finding the outstanding achievements and improve it.Finally,we should summarize the conclusions and outlook for the future study,reflect the whole construction and evaluation of the internal control system,put forward the problems that the internal control evaluation should focus on,and make the recommendations for improvement.Outlooking the future research about perfecting the internal control evaluation system of state-owned enterprises,hoping that it canbetter realize the role of state-owned enterprise internal control evaluation.For this specific issue of internal control evaluation,this paper uses AHP fuzzy comprehensive evaluation method to combine the quantitative and qualitative analysis based on Internal control theory--- COSO Integrated analysis theory and the theory of fuzzy AHP,using the essential characteristics of the internal control system as a theoretical starting point for the evaluation of internal control system and make the theoretical perspectives into concrete figures,making the reflection of establishment of internal control system in the state-owned enterprises more intuitive.Using the analytic hierarchy process(AHP) to determine evaluation index of subgoals as well as the weight of each index value, then using fuzzy comprehensive analysis method to evaluate the evaluation index.The state-owned enterprise internal control evaluation index system including internal environment, risk assessment, control activities, information and communication, supervision.Through the analytic hierarchy process(AHP),the five indicators as well as the secondary indexes of weight vector is determined, then the evaluation model was established based on fuzzy comprehensive analysis method to calculate the evaluation results.By AHP fuzzy comprehensive analysis method,we can not only get the comprehensive evaluation of state-owned enterprise internal control,but also the evaluation of the single factor which affecting the internal control. On the basis of the overall index,we can get a basic cognition of the enterprise internal control construction and implementation.Based on the single index,we can learn that which aspect of the internal control construction and implementation need to further perfect.By putting forward the proposals to the state-owned enterprise on its establishment and implementation of internal control system, this paper expect to help the development of the state-owned enterprises and better evaluate the construction and operation of the state-owned enterprise internal control.