CMCC K City Branch Case Study Of Internal Control

Look around on the rapid development of economy in our country in recent years,the neglect affairs crop up here and there because of enterprises ignoring internal control,such as CNAF futures speculation events in 2004,melamine scandal in 2008,Shuanghui clenbuterol events,Qilu bank and Guang xia(Yinchuan)industry limited liability company abandonment in 2011.These events had a great negative influence on country's economy and treasure.It has exposed many problems of enterprises,which including incomplete construct internal control system and weak supervision.Establishing an effective internal control system is important and indispensable to the development of contemporary enterprises.It can effectively help enterprises to control risks and to meet the business goal.Nowadays,the telecommunication enterprises have made a lot of R&D work to set up an internal control system to adapt to the development of Chinese telecom enterprises,introducing overseas advanced concepts and blending in the enterprise risk management into the internal control system.However,since the lack of experience,the internal control theory in our country has many shortcomings in practical and theoretical field compared to that of western developed countries.As the opening of Chinese economy and the trend of global integration,native telecom enterprises are faced with numerous disadvantage factors,risks,and the challenge of internationalization.Therefore,introducing overseas advanced ideas and methods of the internal control system construction and creating appropriate internal control system of telecom enterprises in China is particularly urgent.First of all,this article expounds the theory,characteristics,and the basic framework of internal control.Also,the article sets the branch of China Mobile in K city as the research object,then exposes the problems existing in the system of internal control of K city branch of China Mobile:(1)The lack of rounded performance appraisal system;(2)employees' lacking knowledge of internal control;(3)the mismatch of internal control and corporate informatization degree;(4)the flaws in self-assessment system of internal control;(5)the inadequate supervision of internal control.Then,this article analyses the reasons for the problems mentioned above,taking K city branch of China Mobile as an example,mainly from the following aspects:(1)Enterprise ignores the risks because of the fierce competition;(2)The lack of incentivemechanism lead to the deficiency of risk awareness;(3)The insufficiency of internal audit and internal supervision leads to incomplete monitoring system;(4)Imperfection of internal information communication mechanism is imperfect leading to a low informationize level.Finally,after finding out the existing internal control problems in K city branch of China mobile and analyzing the corresponding reasons,put up following suggestions on perfecting the internal control of the corporation:(1)Strengthen the construction of internal control culture.On the one hand,in the process of the constructing corporate internal control,It's necessary to extensively collecting the opinions of every employee,make sure that every employee can participate in the construction of internal control,thus strengthening their consciousness of internal control,and making the staff consciously obey the corporate internal control system.On the other hand,regular and irregular training of the awareness of internal control system is necessary,too.Educating the internal control theory through employees' daily work and routine tasks,strengthening self-supervision consciousness of the employees,and improving the staff's risk control ability to effectively reach the balance of business development and internal control.(2)Establish an effective incentive and early-warning mechanism.Enterprises promote benign competition toward employees through the performance-evaluation system,thus increasing employee motivation and transferring the pressure of competition into the energy of promotion.The early-warning mechanism,by constraining employees' bad behavior and developing good working habits,creates a good internal environment and the risk-prevention consciousness.Rely on the incentive and early-warning mechanism,a harmonious and positive enterprise operating environment is built.(3)Strengthen the supervision over the internal control of internal audit departments.First,the enterprise internal audit is a continuous dynamic process.It will greatly reduce the effectiveness of internal audit if it is only used as the tool of enterprise error-detection.Second,the enterprise internal audit team needs high-quality professional members.Third,set up a scientific system of internal supervision.Fourth,set up strict accountability of authority.(4)Build efficient information communication.To improve the information system,enterprises need to,based on the actual application ability of the information system,realize the universal coverage of the enterprise information management system,such that providing strong guarantee for promoting the information reform,perfecting the construction of enterprise information system,and increasing enterprises' management level,taking K city branch of China Mobile asthe example.The analysis of the internal control in CMCC K city branch is very significant for Chinese telecommunications enterprises to build the internal control system,to realize the telecommunications industry sustainable development and international strategy,to provide references for the theory of internal control research in the future with the new economic environment.