Study On The Effectiveness Of Internal Control

The report of the 18 th National Congress of the Communist Party of China puts forward: "Put ecological civilization construction in a prominent position and integrate it into all aspects and processes of economic construction,political construction,cultural construction,and social construction,and strive to build a beautiful China and realize the sustainable development of the Chinese nation.The proposition of the concept of "beautiful China" indicates that China will spend more manpower,material resources and financial resources on the construction of ecological civilization,and at the same time it is an opportunity for the environmental protection industry.Last year,the concept of "garbage classification" popular on the internet.On June 2,2019,General Secretary Xi Jinping made important instructions on garbage classification,from the height of national strategy and high-quality development of the country,profoundly clarified the extreme importance of garbage classification,clarified the guidelines for garbage classification,the root-cause measures and the job goals,have a strong scientific,targeted and instructive.It can be seen that China’s awareness of ecological environment construction is becoming stronger and stronger and has risen to the level of national strategy,so the environmental protection industry is bound to be affected by this strategy.Considering that the environmental protection industry is considered as an emerging industry in China,the internal control of environmental protection enterprise must also be continuously improved during development.Since 2008,five ministries and commissions,including the China Securities Regulatory Commission and the China Banking Regulatory Commission,have successively issued relevant documents for internal control of large and medium-sized enterprises--the "Basic Standards for Enterprise Internal Control" and its supporting guidelines.The promulgation of this document has played an important role in strengthening the internal control management of enterprises,improving their operating efficiency and their ability to prevent risks.As people’s awareness of ecological environmental protection becomes stronger and stronger,many environmental protection enterprises have also sprung up,and the internal control of environmental protection enterprises must be further improved.Therefore,it is necessary to know in a timely manner whether the internal control of environmental protection enterprises is standardized and whether the level of control is up to standard,and based on this,put forward corresponding suggestions to improve themanagement and innovation capabilities of environmental protection enterprise.This article selects company A in the environmental protection industry as the research object.First,it thoroughly sorts out the Chinese and foreign literature related to various factors affecting the effectiveness of the company’s internal control and the evaluation methods,and summarizes the theoretical basis of this article.Second,by consulting various materials,understand the status of the internal control of the environmental protection industry,and from the perspective of improving the internal control system of the environmental protection industry,elaborated the need to further improve the internal control system of the environmental protection industry;again,this article will be based on China’s "Basic Standards of Enterprise Internal Control",the theory and empirical methods are used to evaluate the effectiveness of Company A’s internal control respectively from the five aspects of internal environment,risk assessment,control activities,information and communication,and internal supervision.At the same time,this article also focuses on the status of internal control of company A’s business process and compare it with a representative company in the industry,concluded that the overall internal control of Company A is more effective,but in all aspects of internal control,the management of company A’s internal control still has room for further improvement.Through research,this paper finds that company A still has inadequate systems in terms of human resource management and control activities.Based on the analysis results,this paper also proposes suggestions for further improving the human resource management system and the enterprise’s fixed asset management system and corresponding improvement measures.Finally,through research and analysis,this paper draws some enlightenments when enterprise establishing the internal control system.First,for environmentally-friendly technology companies,we must attach great importance to the management of human resources when establishing internal control system of the company;Second,we must establish and improve various rules and regulations;Third,we must continuously improve the company’s business processes.It is hoped that this paper can provide suggestions and references for environmental protection enterprises in the process of establishing and perfecting internal control.It is also hoped that this paper can provide useful help to subsequent researchers in this field.