| In the wake of rapid economic growth and accelerating economic integration in China,companies are now confronted with an increasingly competitive marketplace and growing business risks.To survive and achieve sustainable development in intense competition,companies must build a complete set of modern enterprise management system to keep pace with the times.To strengthen internal management and prevent and control various risks effectively,companies should optimize the mechanism for internal supervision and management,so that the internal control and supervision can be effectively implemented.The internal control system exists to ensure that a variety of risks confronting companies can be properly controlled.It can standardize overall risk management process in companies,assist them in the identification,assessment,analysis and management of risks,strengthen effective control over management deficiencies,and ensure a smooth fulfillment of overall goals.As a pillar of national economy,the construction industry has a great impact on the development of Chinese economy.Due to significant differences from other industries,the construction industry has to face more risks in production and operation.The construction companies in China are generally less capable of preventing risks.Owing to the lack of internal control management,the development of some small and medium-sized construction companies is exposed to great threats.How to establish and improve the internal control system in small and medium-sized construction companies and enhance their ability to manage risks has become the focus of study on internal control in the construction industry.Based on the theories related to internal control and the characteristics of the construction industry,SZ Construction Company,a typical representative of small and medium-sized companies in China’s construction industry,was selected as the object of study to investigate the defects in internal control of small and medium-sized construction companies and propose specific suggestions for improvement.The article consists of six chapters.The first chapter introduces the background and significance of the present study,reviews relevant literatures in China and abroad,and explains the methodology and innovations.The second chapter is an overview of internal control theory.The definition,development history and theoretical basis of internal control are expounded.The third chapter introduces the status quo of internal control and its main defects in SZ Construction Company,including the basic information of the company and the construction industry.The status quo of internal control and its main defects are then analyzed from the five components of internal control.The fourth chapter proposes appropriate suggestions for improving the defects found in the third chapter,explains the importance and overall principles of improving internal control,and provides specific improvement measures from the five components of internal control.The fifth chapter introduces the continued support for the measures to improve internal control,including the purpose and importance of continued support,the content of specific measures and the expected outcomes.The sixth chapter summarizes the entire article and analyzes the deficiencies of the present study.It is expected that the research results may provide some inspiration and assistance to establish and improve the internal control system of small and medium-sized construction companies in China. |
