Research On Internal Control Of LG Iron And Steel Company Limited Liability Company

Since the 1990 s,with the development of economic globalization and regionalization,our country gradually entered the critical period of transformation from planned economy to market economy,enterprises became the main body of the market which can be responsible for themselves and independent.Which at the same time,enterprise can run for independence from government control,but it leads to fiercer competiton both of international and domestic.This is even more true for iron and steel industry.In recent years,the iron and steel industry of our country has been performing the old management mode of planned economy.However,under the socialist market economy system,in order to ensure the sustainable development of enterprises,our government successively promulgated a number of laws and regulations concerning the internal control of enterprises to solve the problems of internal management and control over chaos in some enterprises and institutions,to improve the lack of internal control of the iron and steel industry by enhancing the ability of management and risk prevention of managers.From the high prices of steel raw materials in recent years,it can be seen that the management risks of steel enterprises are increasing day by day.Having a sound internal control system is particularly important to the steel enterprises.This article first describes the background and significance of the research,and analyzes the existing results about relevant researches at home and abroad.Then combined with data and the basic theory of internal control,it analyzes the establishment of the internal control system among the enterprises in our country,and discusses the essence of the internal control and what it is.The article takes LG Steel Co.,Ltd.which is a typical representative as the main research,and then make analysis from such aspects as the internal environment,risk assessment,control activities,information and communication and internal supervision,and so on.Using literature research method,comparative analysis method and observation induction method to analyze the internal control problem of LG Steel Corporation.Summarizing experiences and enlightenment according to the practice of AG steel company,including the match of internal control mechanism and innovation risk,the balance between financial leverage and financial risk,the opportunities and threats of market expansion.Finally,it puts forward suitable suggestions for the internal control of LG Steel.It is hoped that we can provide the iron and steel enterprises in our country with suggestions of certain reference value of establishing risk management,improving operating efficiency and achieving strategic goals on the basis of improving internal control of the enterprises themselves.