Research On Internal Control Optimization Of L Subsidiary Based On Group Internal Audit

In modern enterprise management,especially the whole operation and management process,internal control goes through it and helps to improve the overall quality and efficiency,and also help enterprises to control risks and create value.In the increasingly competitive environment of the market economy,there are many severe external risks,which emphasis the importance of management.China’s listed companies are required to disclose the performing of internal control.From the disclosure report,we can see that there are still many problems in the construction of internal control.L company is a professional engineering company which runs mechanical and electrical equipment installation.Its main business segments include design,construction,maintenance,etc.,and its business indicators have achieved steady growth for five consecutive years.L company,as a large state-owned group company’s three-level subsidiary,can achieve its development strategic goals by improving the internal control system and completing the execution of internal control activities.According to the five elements of internal control,Z group company used the unified internal control standard template to internal control audit of L company.Many deficiencies found in the process.It indicated that L company urgently needed to improve and optimize internal control,and strengthen risk management.From here,this thesis according to the general idea of internal control,including COSO framework and China’s "Enterprise Internal Control Basic Standards",divided into two levels to carry out analysis,one is the company level,the other is the installation project level.Based on the five elements of COSO framework,I designed a questionnaire.By issuing questionnaires to all employees of the company,collecting and sorting out the results of the questionnaires,L company’s internal control problems at the company level were found.At the same time,it was pointed out that there were also problems such as unreasonable use of templates in the way of internal control audit.Turn over the COSO framework and select the installation business segment from the perspective of functional units,which belongs to the important business segment of L company’s overall operation,combined the internal control points of the standard test template used by the group’s internal audit to find out the internal control problems of L company’s installation projects.On these two levels,the problems existing in each of them are found out,and putting forward suggestions and measures for improvement successively,emphasizing that L company needs to improve the internal control system suitable for its own development continuously.Through the research of the thesis,the internal control problems of L company are analyzed,optimization suggestions are also put forward.It is helpful to improve the internal control system of L company and carry out internal control activities.To improve the ability of enterprises to cope with operational and financial risks,and also hopes to provide reference for the internal control research of mechanical and electrical installation industry in other state-owned enterprises.