Research On The Internal Control Of Environmental Protection Enterprises

The report of the 20th Party Congress pointed out that "Chinese modernization is a modernization in which people and nature live in harmony",which clearly defines the strategic task of ecological civilization construction in the new era of China,and the general keynote is to promote green development and the harmonious coexistence of people and nature.In the face of the country’s emphasis on the construction of ecological environment and the implementation of national strategic tasks,environmental protection enterprises face sharply increased challenges,the internal and external business environment of enterprises more complex.At the beginning of the twentieth century,the definition of internal control became clear.Internal control is very important for enterprises to effectively avoid various risks,ensure the smooth implementation of business processes,and achieve financial reporting objectives.In recent years,academic research on internal control has become more and more complete,but analysis reveals that most of the academic research on internal control is empirical,and mostly focuses on traditional industries,with fewer specific case studies for an emerging industry.This paper introduces environmental protection companies and combines the case study of Tianxiang Environment,hoping to provide a more valuable reference for Tianxiang Environment itself and environmental protection companies with similar problems in the same industry to optimize their internal control situation in the future,and also to supplement the research on internal control.Against this background,this paper uses literature research and case studies to firstly,sort out the existing research results related to internal control theory,internal control influence factors and internal control optimization measures.Secondly,it introduces the concepts of internal control and the five elements of internal control as well as the principal-agent theory,stakeholder theory,and information asymmetry theory,and analyzes the current situation of internal control in environmental protection enterprises.Then,we summarize the problematic areas of internal control from the perspective of the five elements of internal control by combining the case company of this paper,Tianxiang Environment.Finally,this paper tries to put forward suggestions for improving and optimizing the internal control of environmental protection enterprises from the perspective of the five elements of internal control,taking into account the characteristics of the industry and the problems reflected in the case,including:improving the organizational structure of corporate governance and providing a healthy control environment;prudently assessing risks and strengthening risk management;strengthening the management of control activities and improving the quality of control work;improving the quality of information disclosure and strengthening the informationization of the company;improving the internal supervision mechanism and playing a role in the construction;improve the internal supervision mechanism and play a restraining role.The innovation of this paper is to introduce the industry of environmental protection,to analyze the internal control problems for the case company,and to try to propose specific measures for the improvement of internal control of environmental protection enterprises,which has a certain novelty.Through this case study,we hope to help China’s environmental protection enterprises to have a clear and correct perception of the importance of strengthening their own internal control construction,and to provide some thoughts on the future work of internal control practice and the long-term development of enterprises,the formation of competitiveness and effective control of risks,as well as to make some additions to the research in the field of internal control.