Shang Yang's Internal Control Thoughts

As a hot topic in recent years,internal control is an important means for enterprises to enhance their competitiveness and plays an important role in safeguarding the long-term development of enterprises,including the United States in 1992 launched the "internal control as an integral framework",in 2004 launched "enterprise risk management as a whole framework" and in 2013 revised "internal control as an integral framework",however,due to the diversity of internal control system in the world,the implementation and application of internal control are influenced to a certain extent by the different cultural situations,and the traditional internal control thoughts of our country are excavated,it is necessary to analyze the internal control system based on China's national conditions.In this paper,by using the method of Comparative Study and Literature Study,taking Shang Yang's thought of rule of law as the core,the author classifies and narrates Shang Yang's two great works,Shang Jun Shu and Qin LV,combining the five objectives of modern internal control and each control element,shang Yang's unique idea of internal control under the rule of law is expounded.According to the characteristic theories of Shang Yang's book of Shang Junshu,such as "benefiting one hole","governing according to law","citing talents and appointing merits",etc.,according to the five internal control objectives: Strategic Development Objectives,legal compliance objectives,reporting reliability objectives,operational efficiency objectives,asset safety objectives and internal control elements,combining with the social practice of Shang Yang's law of Qin,this paper proves that Shang Yang's thought of rule by law has internal control theory and guided the internal control practice at that time,the success of Shang Yang's reform proves the value of his thought of internal control.Finally,by using the method of case study,through studying the internal control system of Huawei Company,it is found that there are some internal control thoughts and measures such as "benefit out one hole","rule by law","Merit and merit",etc.,it proves that Shang Yang's internal control thought of rule of law is similar to the internal control thought of Modern Enterprise Huawei Corporation,and draws a conclusion that Shang Yang's internal control thought of rule of law has modern application value.This paper looks forward to the further promotion of Shang Yang's thought of internal control under the rule of law in the practice of internal control in Chinese enterprises.