Study Of Internal Control Evaluation Based On Balanced Scorecard In Huajian Engineering Company

The internal control system is an organic management system, which is scientific and efficient in an enterprise at all levels and all sectors. It is to ensure orderly and efficient business activities and operations, the integrity and security of corporate assets, the prevention from all kinds of operational risks, the correction of the errors and the defects, and protection of true and complete accounting data and timely and accurate information for the business operation. As companies in the worldwide are improving their management, there are more and more challenges and opportunities for internal control. Theorists and practitioners are increasingly aware of the importance of internal control, and the theory and practice in enterprise internal control of our country needs further research and improvement. This paper has a systematic study on the internal control evaluation in Huajian Engineering Company with reference to domestic and foreign researches.First of all, it illustrates the related basic theories, especially about internal control and internal control evaluation. Since it is raised lately for internal control and evaluation in China, practitioners currently can not proposal a complete internal control evaluation system, this paper introduces balance scorecard, an advanced BSC performance evaluation tool, and also analyzes of the feasibility of balance scorecard in internal control evaluation. It finds that balanced scorecard concept is applicable to internal control evaluation, the technical accuracy can meet the needs of multi-dimensional evaluation of internal control, and benefits of balanced scorecard are consistent with objectives of internal control.Secondly, this paper provided an introduction of Huajian Engineering Company, especiallyits internal control and internal control evaluation system. We find that their internal control evaluation system needs to be improved. Lastly, it defines the content and standards of internal control, the implementation bodies in the internal control evaluation and the design principles for related indicators. Based on balanced scorecard theory, this paper combines internal control with the feature of Huajian Engineering Company, and changes the framework of the evaluation index system into four different dimensions, which are financial dimension, the operational dimension, the internal business dimension and learning and growth dimension. It establishes corresponding assessment indicators for each dimension, and assigns each index weights using competent weighting method. Then it makes the business run more efficiently through constant communication and amendments.