The Research Of The Electric Power Company Of Collective Enterprises’ Internal Control Environment

As an efficient way for enterprises to achieve self-management and improvement, internal control has aroused more and more awareness with the development of economy. And so has internal environment control, which is the most basic one among all five elements of internal control. Given such importance, the enhancement of control environment and self-management can decrease the possibility of financial fraud and then help a company maintain sustainable growth and keep competitive in the whole market.The electric power company of collective enterprises has been supported by the main monopolized industry. National policy has repeatedly promoted enterprises and the separation of the power of the main industry as developing with the time.In 2002, the State Council issued the "Electricity System Reform Program", marking the beginning of the power system. In 2007, the State Council issued the’Eleventh Five-Year ’deepening the power system implementation of views, an explicit proposal to the steady implementation of enterprise grid separation of major reform, the power system reform has entered a new stage. Electric power company of collective enterprises in the process of electric power system reform, the problems existing in the internal control environment appeared continuously, seriously hindered the development of enterprises. This paper takes Company L as an example. As an electric corporation, L is established to support the electricity industry. Along with L’s great growth and reform development, the company also faced huge challenges, getting marginalized away from the main monopolized industry. Under the market economy competition, L the existing problems in the internal control environment cause hidden trouble to L company’s future development. This paper is based on the study of internal control environment and the internal control standard, taking L company as an example to illustrate the situation of the management style, Analyzing the existing problems of the internal control environment. In view of the problems, combined with L company’s characteristics, giving relative advice and reasonable solutions.