Research On Cost Control Of W Real Estate Company Based On Internal Control Framework

At present,China's real estate industry has entered the fine management mode from the extensive development mode,because of fierce market competition and policy restrictions.As a result,the industry's profits rate declines year by year.In this context,this paper carries out research about cost control of the real estate business,and focus on the perspective of internal control of the real estate business cost control.This paper first introduces the theory of internal control,starting from the basic principle of internal control theory,and introduces the principle and the five elements of internal control.Meanwhile,this paper introduces the basic characteristics of the internal control of real estate enterprises.Besides,the traditional real estate cost control basic methods and modern cost control theory were introduced,and the basic principles of the real estate business of cost control was summed up.We choose the current situation of W company to start the analysis and research,through the relevant theoretical research and business case analysis,trying to find a method for managing the enterprise.For W company in cost control problems,this article from the perspective of five elements of internal control,analyzes the detail causes of these problems.We put the real estate business cost of business processes,rights and responsibilities and implementation under the internal control framework,fully expose the risks of business management.Finally,aiming at these problems and risks,some suggestions are put forward to improve the organizational structure and development strategy in the internal environment.In terms of risk assessment,risk identification,risk analysis and risk response measures are introduced in detail.In the aspect of control activities,suggestions are put forward,such as incompatible job separation control,reasonable establishment of authorization examination and approval.Other suggestions include strengthening cost supervision,strengthening information construction and establishing audit mechanism,etc.Cost control is the effective management of real estate enterprises to pursue more effective targets,and is the control process which needs to be implemented.The real estate business cost control can not be limited to Jian'an cost control,which should have the whole enterprise large cost control concept.During the whole management process,key points should be focused.Internal control can improve the enterprise's ability to resist risks,establish an effective internal control system,as soon as possible find the problems in the process of enterprise management,and take measures to prevent risks.In this paper,an innovative perspective is proposed to study the cost control of real estate enterprises from the perspective of internal control.Based on the current situation of cost control management,we find the problems related to internal control,analyze the problems and find out the corresponding coping strategies.Under the internal control framework,there is a mature internal control management for support to implement cost control,either from the organizational structure and responsibilities allocation,or the cost of business compliance and risk of business objectives control.As soon as possible from the internal control to sort out the cost control problems,we can reduce the occurrence of inefficient costs,and make the enterprise's resources effectively used,thereby enhancing the operating efficiency of enterprises.