Study On The Effectiveness Of Internal Control In Zijin Mining

As the main pillar industry of China’s economic development,mining industry has provided great support for the social development of the motherland and the actual economic construction in the aspect of material energy.In the international market,mineral products are affected by many factors and fluctuate very much.In the increasingly competitive environment,demand for mineral products has plummeted.triggered a series of reactions,mineral prices all the way down,and eventually corporate profits shrank.The emergence of this situation has directly affected the production and operation of mining enterprises in China,causing many mining enterprises to appear high mineral inventory,difficult capital turnover and other very serious problems.Based on this,mining enterprises need strict requirements,High standards should be strengthened in terms of internal control to achieve the purpose of improving economic efficiency and achieving the strategic objectives of the company.In this paper,Zijin Mining,a large state-owned mining enterprise,is selected as the research object,combined with the relevant literature on internal control and the effectiveness of internal control at home and abroad,to form the ideas and methods of this study.First of all,from the five elements of internal control and the effectiveness of internal control two aspects of Zijin mining internal control activities of the preliminary qualitative analysis.Based on the above theory,this paper combines the actual situation and effect of internal control design and operation of Zijin mining business.An index system for evaluating the effectiveness of internal control is established.Analytic hierarchy process(AHP)is used to determine the weight of each index in this evaluation system,and fuzzy comprehensive evaluation method is used to obtain the comprehensive evaluation results of internal control effectiveness of Zijin mining business,and the general level of internal control effectiveness of the company is obtained.The main reasons for the effectiveness of internal control are: the system of internal control system is not perfect,the design of internal control system is not scientific,and the design of operation mechanism of internal control is not standardized.Finally,according to the reason,put forward the concrete implementation plan and the solution measure.This paper finds that the internal control activities of Zijin Mining are basically effective.