China Unicom Y Branch's Internal Control System Improvement Research

The core of company management system under the condition of modern market economy is to perfect the corporate governance structure,and a good corporate governance structure is undoubtedly the basic factor to improve management benefit and efficiency,while the scientific,reasonable and effective internal control provides the strong guarantee for the company to achieve its business objectives.With the development of global economic integration in depth and breadth,the living environment of traditional telecom companies has changed greatly.The uncertainties of the internal and external environment of the company are increasing,and the future development is more difficult.China's telecommunications companies are facing more severe challenges and pressures than ever before.In order to meet the new opportunities and challenges,the government has carried out many reforms on the communication management system,and the telecommunications industry has undergone three major reorganizations.In June 2008,the Basic Norms of Corporate Internal Control(Finance[2008]No.7)was issued by five departments,including Ministry of Finance,Audit Office,China Banking Regulatory Commission,China Securities Regulatory Commission and China Insurance Regulatory Commission.On April 26,2010,the aforementioned five departments jointly releasedSupporting Guidelines for Corporate Internal Control.The Guidelines includes 18 items for Guidelies for Evaluation of Corporate Internal Control,Guidelines for Application of Corporate Internal Control and Guidelines for Audit of Corporate Internal Control,together with previously issued Norms,it marks that the Chinese company's internal control system which adapts to the actual situation of China's companies and integrates the advanced experience in the world has been basically built.In order to ensure the sound and smooth implementation of the internal control system,the CSRC will incorporate the internal control construction issues into daily supervision of listed companies.In November 2013,the Development Research Center of the State Council submitted the"3 83"reform scheme,with particular emphasis on the reform of the communications industry.Therefore,the China Unicom paid more attention to the construction and improvement of the internal control system,and called on all levels of branches to improve it as soon as possible.The China Unicom Y Branch has made a probe into the construction of its internal control system under the requirements of the group and achieved some good results.However,company's production and operation activities are faced with various risks,such as defects in internal environment,weak awareness to risk management,formalized examination and approval system,poor information communication and lack of supervision.In conclusion,drawing on the theoretical connotation and practical value of COSO framework,it is urgent to improve the internal control system of China Unicom Y Branch.Based on COSO internal control framework and risk management theory,the author usescase study,literature review and empirical approachto study the improvement of internal control system in China Unicom Y Branch.First,the thesis reviewed the related literature and the company internal control system to find out the research space and content;Second,it pointed out that many problems existed in company,such as unreasonable organizational structure,lack of internal control culture,weak awareness to risk management,unsound internal control system,formalized supervision and administration;Third,it analyzed the causes of the existing problems;Finally,the paper made a systematic discussion on the goal of perfecting the internal control system,the basic principles and the countermeasures and suggestions to perfect the internal controlling system in China Unicom Y Branch according to the Basic Norms of Corporate Internal Control.This article believes that,the Y branch should optimize the organizational structure,improve efficiency of production and operation,pay attention to honesty culture and human re'source management,ensure enterprise vitality,strengthen risk management,eliminate internal control violations,perfect internal control management system,fulfill process control and information communication,enhance supervision and control as well as internal control system,so as to achieve further improvement in internal control system...