Research On Internal Control Of Local State-owned Capital Investment And Operation Enterprises

State-owned capital investment and operation enterprises are wholly state-owned enterprises authorized by the state to perform the duties of capital contributors of state-owned capital on its behalf,and are professional platforms for market-oriented market operation of state-owned capital.Due to the rich development resources,large number of construction projects and huge amount of capital in state-owned capital investment and operation enterprises,and the problems of irregular internal management and inadequate external supervision in some of them,new types of corruption cases using them for benefit transfer occur from time to time.In response,regulators have issued several risk management and internal control-related regulations and policies,requiring them to establish sound internal controls.Based on combing the literature on compliance risk management,internal control,and the combination of compliance risk management and internal control,this paper constructs a theoretical foundation and analytical framework for internal control of state-owned capital investment and operation enterprises from four aspects,including the definition,objectives,principles,and elements of internal control.Enterprise L is selected as a case study to analyze the current situation of its internal control through semi-structured interviews,and to identify the deficiencies in the effectiveness of the internal control design of Enterprise L based on risk control objectives,so as to propose countermeasures.After the analysis,the main conclusions of this paper are as follows:First,the first task of establishing internal control then is to divide the responsibilities of internal control among the company’s board of directors,the party committee,the subsidiaries and each subhead in order to achieve clear authority and non-crossover functions.Second,the company should give full play to the existing advantages of human resources,focus on the training and performance evaluation of employees,the staff performance and internal control organically combined to ensure that each employee can perform their own internal control responsibilities.The third company develops a complete management system in the areas of comprehensive budget management,asset management,and procurement activities,and improves them according to the procedures in the system.Fourthly,a sound and reasonable internal control risk evaluation system is established.A sound risk assessment procedure is established to ensure that the risks of internal control in each operation can be effectively monitored and controlled.The research perspective of this paper is more unique.This paper selects state-owned capital investment and operation enterprises to start the research after they have achieved transformation,so that the research perspective can be enhanced and expanded on the original basis.At the same time,this paper systematically analyzes the problems in the internal control of state-owned enterprises and gives some suggestions for improvement,which can provide some reference experiences and suggestions for other state-owned enterprises of the same type when conducting internal control research.