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Design principles, concepts and ideas on the enterprise internal control system

Author: WangXiaoDong From: www.yourpaper.net Posted: 2010-06-19 14:37:02 Read:
[Keywords] internal control design principles design concept design idea of dynamic design static design
[Abstract] the internal control system of enterprises should take the interests of owners and the control target as the starting point, fully embodies the risk control and decision, at the same time, follow the information system and the cost benefit principle and combining the enterprise external environment and characteristics of the design is feasible and effective.Design of enterprise internal control system of the overall design and individual design two concrete ideas.

The United States of America COSO Committee (Committee of Sponsoring Organizations of the Treadway Commission) pointed out in its 1995 report: "internal control by the corporate board of directors, management and other personnel to achieve the reliability of financial reporting, the effectiveness and efficiency of operations and the current laws and regulations to comply with three goals to provide reasonable assurance".It believes that the overall internal control framework is mainly composed of control environment, risk assessment, control activities, information and communication, monitoring of five elements.A perfect internal control system is the foundation of a successful enterprise.A strong internal control system means the company can improve the efficiency, strengthen the ability to control external things, people can get information and at the right time and place to use; good management and effective internal control can ensure an organization at any time of the adverse circumstances, to limit its adverse effects, can also give the members of the company sufficient degrees of freedom to play its judgment and imagination, bring the error behavior of the risk management, so as to help the company successfully.Therefore, the design principle and idea of enterprise internal control system has important practical significance to study.

, the enterprise internal control design principle of

The enterprise internal control system to ensure that the enterprise's operation and information processing efficiency, its design features to the country's political and economic system and enterprise itself as the basis, to the legal system as the basis, this is the basic guiding ideology of the internal control system.Establishing modern enterprise internal control system principle of design as a starting point.

(a) the principle of universality and
The enterprise is a business environment, its survival and development is restricted by environment.Enterprise environment includes political environment, economic environment, natural environment, law environment, management environment.Design of enterprise internal control system must also take full account of the external environment of the enterprise, which is the premise of the enterprise to survive, it is also the premise of enterprise internal control system input and output aperture and external environment.So the enterprises in the development of the internal control system, we must first consider the national conditions of our country, to obtain the consistent and economic development trend in China in the macro.The socialist market economic system has its particularity, it is a product of the market economy and political system of our country combined, with Chinese characteristics.Enterprises in the political and economic environment, we must understand the state of the economic system and political system, understand the focus of China's economic development, the national economic structure adjustment trend as the guidance, ensure activities with macroeconomic development, with the aid of the state driving force in promoting the development of economy development of the enterprise, can not swim against the stream, only and the national system to adapt to the internal control system has vitality.Secondly, the internal control system must be set to the laws and regulations of the state as the basis, cannot ignore state laws and regulations exist, but must not conflict with the laws and regulations, this is the most basic requirements of the internal control system design, a basic premise of the establishment of internal control is the enterprise all.

(two) the special principle of
If the design of internal control system to meet the system and the country's legal system is the general principles, the design of internal control system should be combined with the enterprise's own characteristic is the principle of specificity.According to the universality and particularity of contradiction principle, each enterprise has its particularity, are out of the ordinary characteristics, enterprise scale, in the form of system of ownership, engaged in production and business activities, the environment, the enterprise life cycle and management form the special design requirements, all enterprises internal control the system according to the actual conditions of enterprises, combined with their own characteristics to establish internal control system.The developed control system has adaptability and maneuverability.So before the internal control system establishment, to have a complete understanding of the enterprise, according to the characteristic of enterprise, the comprehensive consideration of the enterprise's organizational structure, project number, operation flow and management form, building a three-dimensional structure of the internal control system.

(three) the principle of cost and benefit of
Management method of cost benefit principle requires that the enterprise must use scientific in order to reduce the cost, improve economic efficiency, and strive to obtain the maximum economic benefits with minimum control or management cost.An important goal of internal control is to improve the operating efficiency of enterprises, so in the design of internal control system to carry out the principle of cost and benefit.In the design of the internal control system, we must first correct and careful selection of control points, control options.If the enterprise is not to control, enterprise operation must be low efficiency, with the increase of the control point, the efficiency of enterprises gradually increase, but when to a certain number of control points, the enterprise to increase control points, the marginal benefit obtained is decreasing with increasing, because the control point, enterprise operation gradually lose their flexibility, system rigid, resulting in reduced efficiency; on the other hand, with the increase of the control point, the marginal cost of increased gradually, so the marginal cost is equal to the number of control points corresponding to the equilibrium point of the marginal benefit, enterprises should choose the best control point number.As shown in figure 1.

The second is to make efforts to reduce the control of various cost, strictness and integrity should not be too much emphasis on control, should try to streamline the organization and personnel, improve the control methods and measures, reduce the complexity and procedures, to avoid duplication of work, so that enterprises can save costs because of work, improve the efficiency of the simplified.

(four) the principle of
Internal control lies in the economic activities of enterprises operating in a predetermined range, and according to the feedback information to correct the deviation.For a control system, not only control the main role in the controlled system, the controlled system can also react to the control subject, which is the feedback function.Control of the process is the use of feedback in the management activity of information, constantly adjust, economic activity is revised, which tends to control target.So the design of internal control system of enterprises on the one hand according to the characteristics of information feedback process and stages, design reasonable process, the function division, the division of responsibilities, to ensure the correct use of control information transmission channels and information; on the other hand, to build a reasonable platform for the transmission of information, the establishment of internal control information model.

(five) the principle of systematic
The enterprise internal control system is a system, it has overall function and behavior.In the internal control system design, the system should be based on the philosophy of planning system, considering the overall needs, in order to establish the system, complete and effective internal control system.Secondly, to consider the need and the coordination of each subsystem.Each unit of the whole is composed of each part and each link by the mutual connection, mutual restraint, component factors not only reflect the overall generality, and show their personality, the division and cooperation system is one of the targets of the internal control system.

two, the enterprise internal control design philosophy


According to the design principle of the internal control system, internal control system design with the characteristics of the country's political and economic system and enterprise itself as the basis, to the legal system as the basis, this is the basic guiding ideology of the internal control system.The enterprise internal control system is designed to control the strengthening of enterprise risk and management decision-making, maximizing the business owners value.Therefore, the design of internal control system from the following perspective to consider:

(a)
owner perspective
According to the definition of COSO, the internal control system must be involved in corporate board of directors, management and staff.The final purpose of the internal control system is to ensure the maximization of shareholder value, so it should highlight the owner's position in the design of the internal control system, but the design of China's internal control system basically
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