W Water Company Internal Control Research

Water is the essential resource for human beings.It is strategic resource and is closely bound to daily life and economic development.Along with the economic development in our country,the water industry entered its acceleration period.By the end of 2015,there are reportedly 1,491 companies which are of considerable scale and in total their assets reached to 980,778 billion Yuan.Producing water companies and water supply companies' sales amounted to 175,642 billion Yuan in total.The scales of water industry increased dramatically.With the rapid development of water industry,problems also emerged unceasingly in the management of these companies.Although the reasons behind these problems might be complicated,the very important one is the weakness of internal control,or no effective execution to their internal control system.In May 2008 Ministry of Finance issued "Enterprise Internal Control Basic Regulations",in 2010,the Ministry of Finance together with other departments formulated 18 guidance for internal control which constitute the regulation system for enterprise internal control in our country.But these regulations and guidance are more suitable for large enterprises and listed companies.How to use internal control theory to establish a set of suitable internal control system for water enterprise in the rapid expansion has become a rater urgent issue to be solved in the process of development of China's water companies.In this paper,the theory of internal control is used to study W water company using the methodology of Case Study.From the perspective of internal control,the problems existing in the development of W water company and its causes have been analyzed,and solution has been proposed according to the basic theory of internal control to improve W water company internal control system,in order to help W water company to improve its internal control environment and to improve the management of the company management and to realize the business objectives.