| Internal control is an important measure and method to manage enterprises. Many scholars pay attention to this problem. Since the internal control system of some companies are not effective, it frequently leads to the serious consequences occurring, such as the 2001 Enron case, the 2004 CAO event, Sanlu milk powder incident in 2008 and Shuanghui clenbuterol events in 2011. These well-known companies collapsed because a series of internal mismanagement. These events stimulate the internal management accounting and internal control areas around the world. Therefore, we need to establish a sound internal control system.In recent years, with the rapid development of Xinjiang Tianye Group, the overall planning happen quickly. Moreover, the economy operation and management of Tianye Group effect achieves a significant improvement. Based on environmental and other factors, Xinjiang Tianye Group, a division of the Xinjiang Tianye(Group) Co. chemical plant(hereinafter referred to as Tianye Chemical Company) has poor economic performance in the past two years. The chemical industry now faced with new problems and new conflicts, which influence and restrict the development of enterprise. In order to enhance the quality of internal control and management, it need to provide some effective solutions to solve the bottleneck restricting the influence and enhance the vitality and power of the chemical industry.In this paper, we review the development process of the internal controls and compare the internal control statuses of domestic and foreign countries. For Tianye Chemical Company, we analyze the current situation of internal control departments. Combine main business of internal control with the practical internal control, we investigate the effectiveness of internal control in major business segments and achieve the causes and problems of analysis. These strategies can used to improve the effectiveness of internal controls. In last two years, the economic benefit of company decreased. It is an urgent problem for Tianye Chemical Company to renovate the internal control management mechanism through the analysis of the internal control system, especially main business sectors of economic control. By the objective evaluation of the internal control system and its implementation results, it can further improve Tianye Chemical Company internal control system, and enhance the implementation of internal control. Thereby, we can provide some recommendations to management Tianye Chemical Company. |
