The Impact Of Equity Checks And Balances On The Effectiveness Of Internal Control

Whether check-and-balance ownership structure is an great way for corporate,and what effect equity check-and-balance ownership structure will have on the effectiveness of internal control,are all the hot issues in the theoretical circle.The reason is that when we discuss the impact of check-and-balance ownership on the effectiveness of internal control,we do not consider the life cycle of enterprise development.The growing enterprise is in the stage of fast development,while the development speed of the mature enterprises is slowing down.Therefore,it is difficult to unify the conclusion of the relationship between check-and-balance ownership structure and internal control for ignoring the enterprise life cycle.Based on this background,this paper adds the vertical variable of life cycle to discuss the relationship between check-and-balance ownership structure and the effectiveness of internal control,and divides the case company according to its own life cycle,and chooses the two stages of growth and maturity as the research object.In order to better measure the effectiveness of internal control,this paper uses the normative analysis method to establish a target oriented evaluation system of internal control index.The evaluation system of internal control index involves three levels,five objectives and twelve indicators,including basic level,business level and strategic level.The effectiveness index of internal control is obtained through the comprehensive evaluation of twelve indicators.This paper takes Qingdao beer co.LTD as a case study.Through comparative analysis of the different influences and ways of influence of the check-and-balance ownership structure of Qingdao beer co.LTD on the effectiveness of internal control in the growth and maturity period,it comes to the following conclusions: check-and-balance ownership structure can promote the effectiveness of internal control in the growth period,and effectively maintain the effectiveness of internal control in the maturity period;check-and-balance ownership structure can promote enterprises the achievement degree of asset safety objectives,business objectives and strategic objectives,and it is not obvious in terms of the promotion effect on the realization of enterprise compliance objectives and reporting reliability objectives.According to the conclusion of case analysis,this paper comes to thefollowing suggestions: define the life cycle,optimize the ownership structure,and improve the internal control according to the characteristics of the enterprise life cycle.It provides a new angle and thinking for enterprises to improve the effectiveness of internal control.