A Study On Internal Control Of Financial Shared Services Center Of HE Group

As an emerging management mode,the financial shared service center(FSSC)is suitable for large enterprises with a lot of branches and wide distribution.The establishment of FSSC for enterprises could be brought to shared services with unified standards,efficient processing and cost reduction,thus improving the operation efficiency of enterprises and creating more value for enterprises.However,things are always double-sided.The application of FSSC brings a lot of benefits,as well as some internal-control problems,such as weak control environment,insufficient information sharing,inadequate communication system and changes in risk control points,and other problems.Since the trade disputes between China and the United States,some international companies in China,especially the technology companies,have been sanctioned by the United States.Taking HE group as an example,HE group,one of Chinese leading telecommunication companies,has recently been punished in international business for failing to abide by settlement agreements reached with foreign governments,which lead to be at the risk of going bankruptcy.One of the reasons is loopholes in the company's internal control.Obviously,internal control is one of the determinable factors of the survival of enterprises.A perfect system of the company's internal control,especially the internal control of FSSC,is beneficial to realize the long-term stability of a company,to support the enterprise's strategic development,and to ensure the authenticity and validity of accounting information for a company.Thus,this article uses the method of case analysis,combining with the construction of FSSC of HE group which is relatively mature as the case,according to the five elements of internal control of FSSC,the situation and problem of internal control was analyzed.Furthermore,combining with the internal control theory and practice,suggestions for improvement of FSSC of HE group's internalcontrol will be put forward.It hopes that the suggestions will strive to improve the internal control of FSSC for HE group.