Research On Optimizing Internal Control Of Public Institutions Practicing Corporate Management

Different types of public institutions assume different functions and receive different sources of funding,hence having different requirements specifically on financial accounting and internal control.Institutions defined to practice corporate management not only take the form of public institutions,but also serve public welfare undertakings by utilizing the proceeds from the production and operations of their subordinate enterprises to sustain their operations and make up for the shortages in funds for public welfare undertakings.As such,internal control measures,both for corporate and public institutions,are unable to completely cover the requirements for these institutions.In view of the policy gap in the internal control of these institutions and the urgent need to improve their own management,research on the internal control of said institutions thus becomes essential and bears practical significance.It also bridges the gap in the internal control of such public institutions with corporate management.This paper takes Beijing W Bureau(a public institution practicing corporate management)as an example.It addresses the Bureau's internal control problems and designs a program to optimize its internal control system after fully analyzing the information in its relevant documents.This paper summarizes policy documents and theories as well as the status of study on the internal control practices at home and abroad.It expounds on the status of internal control development of China's public institutions practicing corporate management,as well as the necessity of building an internal control system,and pointing out the existing problems.This research starts with analyzing W Bureau's background and proceeds to an in-depth analysis on the status of its internal control management with a view to explore the deep-seated reasons for the existing problems.It eventually designs an internal control system for W Bureau and offers suggestions for improvement from five aspects covering internal control environment,information and communication,risk assessment,internal control activities and internal audit.