Research On The Defects And Perfection Of The Internal Control

Society need to make progress, the enterprise needs to be developed, and in this process there is always a word accompanied by the management and development of the enterprise, that is the internal control.more and more enterprises have noticed that the internal control has play a important role in the enterprise's development, the enterprises wants to have a continual development, survival,it requires an effective internal control system, only owing a sound internal control system can the enterprise win a great progress and a going concern operation.But, to establish an effective internal control system is not so easy, it depends on the enterprise's managers' ability to design the system, also depends on the enterprise managers' implementation of the internal control procedures, the most important thing is that we need to realize that none of the internal control system is perfect, because there are inherent limitations of internal control itself, because of the existence of these limitations, internal control can only provide a reasonable assurance rather than absolute guarantee to the enterprise development and risk control.Therefore,this article is dedicated to the study of inherent limitations of internal control, through literature search, normative analysis, case analysis and other methods, from the management overriding, cost effective analysis, personnel quality, fraud, etc. A few basic elements, combined with the case, to analyze the causes of defects,their effect to internal control system and adverse consequences to companies,on this basis then to explore the measures on the improvement of the internal control and integration.Through research, this paper concludes that we can improve the internal governance structure, strengthening the external supervision of enterprises and improve the comprehensive quality, perfect the internal control system, increase the price control, etc, to perfect the internal control system,finally in order to achieve the purpose of improving internal control system,improving the corporate governance system and protecting the enterprise's development.