Comparative Study Between China And The United States Government Internal Control

As growing role of internal control in fraud prevention and risk precaution, each government is making effects to perfecting its internal control. After thirty years of economic achievement since reformation and opening up, many issues such as administrative deficiency, lacking performance assessment, state assets appropriation, corruption and fraud are not resolved by economic development, which are caused by week internal control of government. Therefore, it is imperative for China Government to refresh administrative system and establish and perfect government internal control system.The Ministry of Finance Released Administrative Unite Internal Control Norms (Trail) in the year of 2012, but there still exists many problems in its content and framework, such problems as the content confining to administrative units payment business, government procurement, ignoring the root of appropriation state assets, corruption and fraud which is not only caused by administrative units payment business, government procurement, but also by the fact which is the imperfect internal control which is individuals override the internal control used to seek person interests. The government internal control elements is missing, the Chinese government has not been established a complete internal control framework.as the comparative sound internal control country, US Auditing Office released Federal Government Internal Control Code in 2014, took reference to COSO content about internal control, retaining 5 previous elements, added 17 specific guild, which perfected government internal control framework, and played an important role government internal role. The federal government to set up and perfect the internal control, thanks to its strong laws and regulations.It is worth and necessary for China Government to learning and taking reference to.The dissertation takes a comparative research in the newly released internal control roles between the China Government and US. Government from the legislation, framework and assessment of internal control, and discovers exists some defects in the process of the construction of the government, Mainly include:the government internal control laws and regulations is not perfect, only specification issued by the ministry of finance, the lack of legal basis; The object of the internal control activities are mainly aimed at economic activity, is not comprehensive; The government not formed a system of internal control framework, cannot effectively the government to guide the design and operation of internal control; The government lack of internal control evaluation system and so on. therefore, By using the experience of the United States government internal control, combining with the condition of our country, from the Angle of legislation, Angle of internal control framework and internal control evaluation system perspective, Puts forward suggestions on improving the internal control of our government. In terms of laws and regulations, by the National People’s Congress in the form of legislation, discuss with the government’s internal control rules and regulations, and lay a solid legal basis; To perfect the government in terms of framework, the connotation of internal control, objectives, and draw lessons from the United States government set up five elements of internal control and the experience of the 17 principles, to build our country government the framework of internal control system; In terms of evaluation system, from the government of internal control evaluation main body, the government, the internal control evaluation content and the government’s internal control report three aspects to enrich and improve the system for internal control evaluation.