Research On The Internal Control Effectiveness Evaluation Of Administrative Institution

Nowadays,a variety of financial fraud scandals and many kinds of corruption cases have been known to the public via reports.Under the influence of The Sarbanes Oxley Act in America,which has a wide and long-lasting impact in the world,internal control has become an indispensable part in daily economic activities for both enterprises and administrative institutions.Meanwhile,as China's economy is showing a "new normal",with a country-wide increase in material and spiritual needs,the underlying problems in administrative institutions,which are becoming increasingly noticeable at present,will constantly emerge in the future.For example,internal management disorder,inappropriateness in mutual inspection,and imperfectness in external regulation mechanism,which lead to a situation which seems to be good for everybody,but actually not.At present,China is experiencing a transitional period when the whole society develops quickly and a strategic period full of opportunities.Therefore,the following issues,such as how to establish effective management modes in administrative institutions,how to perfect the internal structure of an organization and how to improve their internal control have been regarded as great challenges in the whole society.In addition,the scientific management and highly-effective operation in administrative institutions is also significant for societal stability and constant development in economy.By researching relevant literature published in recent years on internal control and its effectiveness,the author finds that what started much earlier in China is actually the research on internal control in enterprises,which produced abundant findings as well.By contrast,the research on internal control in administrative institutions is relatively limited,because even the first paper on it was not available before 2003.It is since 2011 that more papers on this field have been published every year.Thus,it is concluded that the domestic research on internal control in administrative institutions started rather late,and more research can be done on the overlooked issues in this filed.Since the daily management,operating modes and major characteristics of the administrative institutions and government-affiliated institutions share great similarities,this paper,which takes the perspective of internal control,regards both of them as the research objects.What is discussed in this paper is applicable to both of them as well.It is believed that in order to be adaptive to the new normal in economy and improve the internal management of administrative institutions and government-affiliated institutions,doing research on internal control in those institutions not only has the theoretical significance,but also has the applicable significance for making the governments more effective and establishing a better image among the public.There are several research purposes:First,with a systematical research at home and abroad on theories concerning internal control alone,concerning internal control in administrative institutions,and concerning the comments on internal control,this paper hopes to learn the latest progress in this field,so that a typical research can be done and improvements can be made in terms of the internal control system in administrative institutions and government-affiliated institutions,and a more effective internal control system can be established.By having an in-depth study of relevant theories,the overall understanding of internal control could be deepened,which will in turn guild corresponding practice.Second,according to COSO's "internal control integrated framework" and the "internal control standards of administrative institutions” published by the Ministry of Finance,questionnaires are designed and data are collected.The analysis of the internal control system of the researched institutions is made by using AHP and FCE and from the qualitative and quantitative aspects.After finding out the weakness in internal control in the researched institutions,the paper tries to improve the theoretical research on establishing the internal control system in administrative institutions and government-affiliated institutions.Third,by evaluating the internal control of the researched institutions from the internal control perspective,this paper hopes to promote the researching findings to all the administrative institutions and government-affiliated institutions,which is meaningful for having a good understanding of the limitations and conflicts in internal control in those institutions.It is also hoped that the research findings can to some extent improve the overall management of those institutions and in turn provide some reference for the national governance.This paper consists of five chapters,each chapter of the roadmap is as follows:Chapter one is the introductory chapter,which begins from the research background and significance,moves to the research ideology and methodology,and end with the contributions and limitations of this paper.The second chapter is the literature review,which touches research done at home and abroad on internal control in administrative institutions and government-affiliated institutions.It is hoped to gain a good understanding of the present situation of internal control and the research findings on this field,which provides the theoretical guidance for the whole study.The third chapter explains related concepts and provides the theoretical analysis.After defining two terms,one is the internal control in administrative institutions and government-affiliated institutions,the other is the effectiveness of the internal control in administrative institutions and government-affiliated institutions,this paper makes a comparison between the number of administrative institutions and government-affiliated institutions and that of enterprises to learn about the current situation of administrative institutions and government-affiliated institutions.Meanwhile,by comparing the researching findings available at present on internal control in those institutions,this paper illustrates the necessity of continuing research in this field,explains the problems at present,and analyze the underlying causes.In addition,a study on the theories that influence the system of internal control is also done in this chapter,which lays the theoretical foundation for the whole paper.The fourth chapter is the case analysis of MGT,which first introduces the organizational structure and overall situation of MGT and then collects data via questionnaire on the internal control of MGT.Afterwards,the data are analyzed to evaluate the effectiveness of the internal control of MGT by using the AHP and FCE methods.Finally,the qualitative and quantitative analysis is combined.The fifth chapter makes the conclusion,provides the suggestion and foresees the prospect of the research.The conclusion is made base on the evaluation process and results of the internal control of MGT,which further provides the basis for offering suggestions and foreseeing the prospect.The main contributions of this article are as follows:(1)Theoretically: because there is already some researching finding on the internal control in administrative institutions and government-affiliated institutions,this paper establishes a system on this aspect which includes the objective,the major evaluation party,the evaluation contents.By using a new evaluation system,and using the AHP and FCE methods to do the analysis on the internal control in administrative institutions and government-affiliated institutions,this paper improves the theoretical framework of such a system.(2)Practically: This paper takes MGT as an example and analyses the current situation of its internal control.By using the AHP and FCE methods,this paper establishes a system for its internal control and evaluates its effectiveness from the qualitative and quantitative aspects.Furthermore,this paper offers practical guidance for the internal control of MGT and provides suggestions on policies.In addition,based on the analysis of its effectiveness of its internal control,this paper has some practical significance for the internal control of all the administrative institutions.