Research On Optimization Of Internal Control Based On COSO Framework

The Ministry of Finance and other departments have formulated 18 application guidelines including the Application Guidelines of Enterprise Internal Control No.1--Organizational Structure,the Evaluation Guidelines of Enterprise Internal Control and the Audit Guidelines of Enterprise Internal Control.The issuance of these guidelines also means that the management of Chinese companies has entered a new era.If any company wants to have a large and sustainable influence in the contemporary market,it needs to strengthen the internal control system,improve the system,risk identification and control measures.While the internal control policy is still improving,there are many deficiencies in the construction and application of the internal control of the highway company.In the case of rapid changes in the market environment,highway companies face increasing challenges,only by improving the awareness of internal control,improve the risk response measures,in order to stand up in the long river of development.Although the COSO 2017 version has been upgraded to the "management framework" rather than the previous control framework,but in terms of the actual management status of Chinese enterprises,the direct reference to the management framework is still lack of solid internal control foundation support.This paper reviews and comments the research literature,and chooses the principal-agent theory and control theory as the research basis.The relationship between COSO framework and internal control is analyzed,and the enlightenment of the changes of COSO 2017 framework on the construction of internal control of Chinese companies is summarized.Based on the five elements of "governance and culture","strategy and objectives","performance","review and revision","information,communication and reporting",the proposed implementation target is centered,and the internal control framework is constructed.Taking G Expressway Company as the case object,the company’s current situation and internal control implementation overview are introduced.The internal control status of G Highway Company is described and the risks are sorted out from two aspects of management and business.Finally,risk identification is carried out on the internal control process of G expressway Company,and risk control measures and internal control optimization scheme matching G Expressway company are proposed from the management and business level.This paper believes that: internal control optimization is a gradual process,need to establish a holistic view,stand in the overall visual analysis of the problem,based on the various support points,vertical comb,horizontal expansion.For the internal control optimization of the company’s risk identification,not only based on the management level,but also should be linked to the business level to highlight the operability and strengthen the supervision of the implementation of internal control results.