Research On Internal Control In Large Stated-owned Enterprises Under Financial Shared Model

At the end of last century,many large enterprises groups which have plenty of subsidiary corporations in various areas were encountering thorny issues such as high financial costs,intricate business process and low management efficiency ensued along with high-speed development.In 80 s last century,the financial shared service theory came out,and a great number of large enterprises began adopting this management model.Financial Shared Service can help centralize enterprises' basic financial accounting functions,lower the financial costs and enhance financial management efficiency in order to promote enterprises' core competitiveness and raise the value.Although financial shared service hasn't been introduced to China until 21 th century,many Chinese large state-owned and private enterprises in various fields are gradually establishing the financial shared service center in recent ten years to accomplish the centralization of enterprises' financial management and increase the operational efficiency through financial resource integration and business process reengineering.Nevertheless,the introduction of financial shared service has brought different degrees of changes in enterprises' organization structure and business process.The centralized processing of financial data information has created new hazards while avoided traditional financial risks.Enterprises that adopting financial shared model need to improve the former internal control system and to replace it to accommodate the new type of management model;thus,to decrease the new potential financial risks.As one of the first pioneers who set up the financial shared service,Enterprise A has been contributing a lot in the design and construction of financial shared service as well as internal control.This paper will mainly focus on studying the unique financial shared model and the related internal control inside Enterprise A on the basis of literature reviews and theoretical research.Field research will be used in analyzing the construction triumphs and seeking improvements for deficiencies of Enterprise A's financial shared service model.This internal control study of Enterprise A under the financial shared service may provide some references to those large enterprises that have already adopted or prepare to apply the financial shared service model.