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The practical application of the internal control system in the enterprise to a joint venture company, for example

Author: WeiZhi From: www.yourpaper.net Posted: 2007-11-20 07:56:18 Read:

After joining the WTO to strengthen internal control construction become imperative to enhance the management level, there is a larger gap due to various reasons, the overall level of management of enterprises in China today with the world's advanced level of enterprise management. Due to poor management, resulting in a lot of state-owned enterprises operating inefficiencies If you are concerned about the stock market will find a declining trend from last year's annual report and this year, listed companies in China's overall level of effectiveness. This situation is difficult to adapt to the global economic integration, the market competition. After joining the WTO, China's enterprises are facing competition will be more intense. In order to adapt to the increasingly fierce competition, China's enterprises must improve the management level as soon as possible. Strengthen internal control construction is to improve the management level imperative even a reality shortcut.

Therefore, strengthen the internal control of the construction of the Chinese enterprises need to establish a modern enterprise system, the need for the prevention of fraud and other misconduct, but also to adapt to the needs of the globalized economic competition. The direction of the reform of state-owned enterprises, the establishment of a modern enterprise system in accordance with the requirements of the Fourth Plenary Session of the Fifteenth Central. The core of the modern enterprise system is 'clear property rights and responsibility, separation of enterprise management science', these four aspects are related to the construction of internal control. The clear property rights and separation of enterprise related to the internal control environment control, the control design of the company's organizational structure and administrative leadership. Clearly defined powers and responsibilities and management science is even more involved in all aspects of the internal control construction. So I think that the modern enterprise system, which requires enterprises to establish a sound internal control system, a sound internal control system can effectively promote the well-established and effective implementation of the modern enterprise system.

So far, I was involved in the restructuring of state-owned enterprises, dozens of these companies have is the pillar of the national economy, once glorious moment, but in the end due to successive years of losses, unable to pay its debts as they fall due had to embark on the road of bankruptcy, corporate restructuring. This is due to the the impermanence management business, there are rules that do not follow, fraud, serious waste, corruption and crime, and embezzlement of state assets by various means unfair or disciplinary offense caused. These problems arise, of course, there are a lot of reasons, but the lack of effective internal control is one of the important reasons. A long time, the light weight speed efficiency, re-production of light management business philosophy has not been completely changed in the state-owned enterprises. Change this situation, from the management of the fundamental solution lies in the establishment and strict implementation of the internal control. China's accession to the WTO, Chinese enterprises into the depth and breadth of the competition of the global economy to grow exponentially. Faced the level of competition is more intense. The face of the reality that this can not be avoided, the Chinese enterprises in order to be a foothold in the world market and seek development, it is necessary in both technology and management with work hard to catch up. Management, strengthen the construction of the internal control system is to improve the management level of the basic work is also an unavoidable reality in need. It can be asserted that the internal control system construction, related to the life and death of our company's future.

I think as a certified public accountant, we will be exposed to many types of businesses, in accordance with industry guidelines on its financial position, results of operations, internal management control conduct in-depth analysis of these enterprises in both There are success stories, also failed cases, we wish with the publication of this platform are within these companies we personally see and appreciate the internal management control system construction, implementation successes and failures, listed out, we explore, research, so we established how the internal control system in our unique economic system to produce a variety of enterprise more robust and more effective implementation of a more comprehensive and profound understanding and mastering. Earlier, Beijing Zhengda feed company audit, this internal control design is reasonable and whether the implementation of effective feeling quite humble theory published my first issue, I hope to play a valuable feedback effect, in the future I the issue colleagues able actual audit stated on the understanding and evaluation of internal control and management, we learn together, to explore.

Second, the internal control Overview

Definition of internal control

After two years of study in order to give the internal control of an accurate and complete definition of internal controls, audit procedures Commission under the special committee, published in 1949 entitled "internal control, coordinate systems of various factors and its impact on management sector and the importance of certified public accountants "special report on internal control for the first time make authoritative definition as follows: 'internal control is designed to protect the assets, to ensure the reliability and accuracy of accounting data, and improve operational efficiency enterprises developed , the organization plans to implement policies to be developed to promote the management department and supporting a variety of methods and measures' This definition emphasizes that internal control is not limited to control directly related to the accounting and finance department, it also includes the budget control, cost control, and report regularly on the operating conditions, statistical analysis and statistical reports to the relevant authority, to develop training programs for the training of personnel to enable them to perform their duties, and the establishment of the internal audit department to ensure that the various procedures developed by the administrative department accuracy, and to ensure the implementation of content. In addition, the internal control include some of the activities in other areas, for example, with the nature of the works when the dynamic analysis of the use of quality control and inspection system, basically belong to the productive sector activities.

Of the five sections of the Internal Control Integrated Framework

Internal control integrated framework was released in September 1992, the Commission initiated and organized by the American Treadway Commission (COSO), is by far the most comprehensive description of the internal control. Report on internal control defined as' a management method, by the board of directors of an accounting entity, management and other personnel to develop, to business effectiveness and efficiency, reliability of financial reporting and the implementation of various laws and regulations provide reasonable assurance of co-regulatory goals. 'The report argues that an appropriate and effective internal control framework consists of the following five parts:

(1) control environment. It is a kind of integrity, ethical ethos advocated by management, publicity management purpose, mode of operation and human resources policies to enable staff to consciously manage its activities and fulfill their responsibilities. Management should affect all staff through text descriptions and examples, as well as to take appropriate control measures to improve their ethical standards.

(2) risk assessment. Management control management authorities should target that is completed during the risks associated with the enterprise to identify, anticipate and take appropriate hedging measures. Risk assessment to determine the risk of monetary items, and the importance of the image or reputation of the accounting topics; probability of risk occurrence; how to reduce the risk to an affordable level.

(3) control activities. It is formulated to provide reasonable assurance that the internal control objectives and policies, procedures and regulations. It includes: commercial control, operation and management activities for the guidance of the accounting entity; financial information control to guarantee the safety and reliability of the financial information and the protection of the property of the accounting entity; compliance control, to point to the activities comply with applicable regulations management control requirements and adhere to the ethics and morality.

(4) information and intelligence to pass. This is the relationship between internal and external events or activities related to financial and non-financial information should be identified, possession and passed to decision makers and the responsibility to fulfill those timely and orderly manner. It includes information transfer program and passing range.

(5) The inspection and evaluation. Daily and regularly in order to ensure the appropriateness and effectiveness of internal control and supervision, inspection.

Internal control, internal control content specific performance

The basic internal control is a concrete reflection of the internal control. Including:

(1) The organization planning and control: the overall organization of enterprises set up according to the principles of the compatibility of segregation of duties, operating characteristics, and a clear division of responsibilities and rights;
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