Research On Internal Control Issues Of HZ Public Bicycle Business Branch

Internal control system refers to a series of controlling solutions,measures and procedures designed by all management levels utilizing the mutual restriction and connection of internal labor division to safeguard the security and integrity of economic resources,ensure the correctness and reliability of economic and accounting information and boost the effective promotion of economic benefits,and standardization and systematization are performed on the system to make it more rigorous and complete.A perfect system facilitates the sound and steady development of business activities while a deficient system imposes restrictions.However,in some companies,especially small and medium-sized state-owned ones,due to the absence of owner,unsound governance structure,strong control by insiders,or weak ability of supervision board,attention to the establishment and development of internal control system is insufficient and thus it will lead to defective management system and weak internal control.The expected potential and performance can't be achieved in business activities.For instance,HZ Public Bicycle Branch,a small state-owned enterprise,ignores the importance of the system and finally fails to achieve the anticipated business performance.This article conducts a deep analysis,based on the current business situation of HZ Public Bicycle Branch and combining with relevant theories,on the internal control problems such as unspecific responsibility-taken authority,nonstandard business activities,deficient momentum to establish satisfactory system,unscientific operation goal and weak risk awareness,and analyzes the causes.Then,by analyzing the defects in combination with COSO internal control frame,it proposes to establish an integrated framework based on the five elements of internal environment,risk evaluation,control activity,information and communication and internal supervision to optimize all stages;to be more specific,build a well-defined rights and liability management system,develop fair,impartial and reasonable management rules,set step-by-step operation goals and strengthen managers' riskprevention awareness.These solutions have been carried out and shown the preliminary effects.