| Real estate companies are a young and dynamic economic system and a pillar of China’s economic development.In recent years,however,there has been an increasing tendency to displace real estate enterprises,including the more well-known real estate enterprises such as Evergrande and Sunshine City.In the context of quality economic development,the quality of management of real estate enterprises is increasingly in the spotlight.As enterprises develop,an effective internal control system is integral to the quality of management.However,the internal and external environment and the development of enterprises interact with each other,contain each other and contribute to each other,and during this interaction,new risks inevitably arise,so the internal control system designed,maintained and artificially implemented by management alone may not always be sufficient to meet management expectations and avoid risks.Effective internal controls not only reduce the risk of error and fraud,but also make a significant contribution to a company’s competitiveness and position in the industry.At the same time,the functions,goals and methods of internal control are changing,as is its integration with other areas,such as information technology.Blockchain information technology,with its unique features,has been evolving rapidly in recent times,and the development of applications in all major areas is proceeding at a rapid pace.Given the limitations of traditional information technology to effectively address internal control challenges,the addition of new technologies such as Blockchain is inevitably necessary to improve the dilemma facing traditional internal control systems in the face of risk exposure.By analyzing the characteristics and principles of blockchain technology,this paper proposes a blockchain-based optimization of internal controls to solve the internal control problems of a real estate company（"Company A"）.First,based on the analysis of the background of the topic,the importance of the topic from a theoretical and practical point of view is explained,the concepts related to blockchain technology and internal control are explained,as well as the theoretical framework and the research methods used.Secondly,the necessity and feasibility of using blockchain technology to optimize internal control in real estate companies is presented,the development status of real estate companies in China and the current situation of internal control in real estate industry in China in terms of three main tasks are analyzed: Operation,Reporting and Compliance,which shows that it is necessary and possible for real estate companies to use Blockchain technology to improve internal controls.Company A,a real estate company,is chosen as a case study for the study.Company A’s development history is presented,the internal control problems using Company A’s operational data are illustrated from a COSO perspective,and then targeted solutions based on the principles and features of Blockchain technology are proposed.Finally,we propose the application of Blockchain technology to the internal controls of real estate companies and provide a prediction.The importance of internal controls in today’s business environment is obvious.By highlighting real estate company A’s internal control problems,it indirectly mirrors the internal control problems that currently exist in most real estate companies,and offers blockchain-based internal control solutions for company A,which to some extent facilitates the application of blockchain technology to optimize internal control of other real estate companies to actively optimize the internal control of all real estate companies.It is hoped that real estate companies will actively optimize their internal control systems and contribute to a stable economy. |
