The Research On Internal Control Evaluation Of Small And Medium-sized PE Institutions

In recent years,the industry of China's private equity investment has shown a rapid expansion.As of December 2016,the total amount of PE investment disclosed exceeding 600 billion(involving 3390 investment cases).In August 201 7,the scale of domestic private equity fund exceeded 10 Trillion.In the first half of 2017,the CSRC conducted special inspections on 328 private-equity institutions.Among them,83 private-equity institutions were supervised by the CSRC because of 18 categories of issues,such as publicity,promises of guaranteed earnings,and failure to disclose information as required by the contract,accounting for 25.3%of the total survey.Among the registered managers of private equity funds,only about 0.99%of the total management scale reaches over 10 billion.Therefore,the external supervision and internal management of small and medium-sized PE institutions have become the common concern to the investment industry.Although Asset Management Association of China has issued "Internal Control Guidelines for private equity fund managers",ruled the principles,contents and defects about the evaluation of internal control of managers who managed the private equity fund,but these rules are too general to provide guidance for the actual work about internal control evaluation of small and medium-sized PE institutes.This paper studies the internal control evaluation of small and medium-sized PE institutions,hopefully,small and medium-sized PE management can pay attention to the evaluation of internal control through this paper,and that can play a reference role for internal auditors to carry out evaluation of internal control,promoting the healthy development of the internal control of small and medium sized PE institutions in our country.This paper based on the risk assessment method,built an enterprise internal control evaluation system.Firstly,carded and comprehended the current internal organization evaluation of small and medium PE by the questionnaire survey and analysis of the current situation according to survey results.Next,according to"Internal Control Specification" and streamline operations of PE mechanism,divided the internal control evaluation into levels and business company,combined the survey results obtained the framework which consist of two level indicators,12 secondary indicators and 42 three-level indicators.Finally,calculated index weight using AHP,constructed the evaluation index system of small and medium-sized PE institutes,surveyed different level of evaluation results in different ways.To verify the credibility,take X company as an example,investigate its internal control defects,analyze the internal control situation by using fuzzy comprehensive evaluation method,then verified the questionnaire results and proposed the rectification scheme for the internal control defects of X company.