Case Study On Internal Control Of H Group's Financial Shared Service Center

Since the last century,many large-scale multinational corporations have emerged.In order to solve the problems of uncontrolled management and increased costs brought about by global operations,the Financial Shared Service Center has become the choice of many enterprises.The Financial Shared Service Center originated in the West,and many large Chinese companies are also establishing Financial Shared Service Centers,but the results are mixed.H Group is one of the earliest enterprises to introduce Financial Shared Service Center in China,and the effect is also very significant.For its reasons,it is inseparable from good internal control.The internal control of H Group has always been regarded as foretype and enterprises are often organized to learn from H Group.Therefore,this article will take H Group as an example to study the internal control of its Financial Shared Service Center,analyze the advantages and disadvantages of its internal control,find out the practices worth sharing with other companies,and propose improvements to the areas where there is room for improvement.In this paper,the research methods of case study,literature research and inductive analysis are combined.Firstly,the research background and significance of this paper are introduced.Secondly,the related literature review at home and abroad is reviewed.After the introduction of the method,the innovation and deficiencies of this paper are briefly explained.After analyzing the case,it gives suggestions for its worthwhile reference and improvement.After research,the author believes that the internal control of H Group's Financial Shared Service Center is effective,and most of the control objectives are realized.The advantages of the internal control are: focus on the incentives for personnel;timely adjust the organizational structure;put internal control into corporate culture;the risk assessment system has a clear division of labor;the control activity module is comprehensive,and the whole process control is implemented;the independence of internal supervision and self-monitoring are emphasized.In addition,it is found that there are some perfect areas for internal control: the efficiency of financial processing needs to be improved;the internal reporting is not so effective;the quantitative indicators of the risk assessment system are not enough and there are problems with system maintenance.In response to these problems,the author also put forward relevant suggestions for improvement: optimizing the personnel training and assessment mechanism;setting up the system maintenance and updating mechanism;broadening the communication channels;adding regional centers and improving the risk assessment system.It is hoped that through the author's research,it can contribute to the development of the internal control theory of financial sharing services,and provide some reference for other enterprises that have established internal control systems for financial sharing services.