Study Of The Enterprises Internal Control Based On Network Environment

Enterprises based on network environment are arising and developing with advancement of information and net technology. They have three fundamental characteristics as follows: flexibility, self-learning and virtualization of organizations, which are closely associated with information-centralized orientation in internal operation, management and decision of enterprises with network structures. The traditional theory of internal control has characteristics of coercive control. It is built on the base of management efficiency improvement and hypothesis of reason X, using a series of supervising and controlling measures in order to ensure that members in organizations could make contributions conformed to their rewards, which meets the demand of management and operation of the economic entity. That is exactly the economic source of the internal control system.The driving factors of development of Internet management and internal control theory are development of information technology and evolutions of management theories. Information is the key problem of internal control. Development of net and information technology reduces information cost, improves information distribution within the enterprise hence real-time and sufficient information and communication have been one of the principal characteristics. Controlling activities based on real-time and sufficient information drop down the function of traditional monitoring after work, meanwhile, real-time monitoring is integrated with real-time controlling activities. As for enterprises with network structures, the elements structure of internal control mainly comprises controlling environment, risk assessing and controlling activities and the content of each element changes in substance compared to the traditional internal control. Internal controlling environment in enterprises with network structures mainly consists of organizational structure, relationship with external environment, learning ability of business units, concept of value, characteristics of human resources and so on; in such environment, enterprise should make great use of information and knowledge, depend on the creativity of knowledgeable employee, make decision timely and correctly. So the risks of enterprises based on network environment mainly are the risks in knowledgeable employee exercising the decision right appropriately; unification of controlling standard and controlling activities of enterprises based on network environment which has self-control of all employee as its characteristic make real-time information the only standard in measuring the whole enterprise' controlling activities. Integrated functions of these elements are presented as internal control characteristics that are centralization of improving decision and self-charging with all employee participating.Assessing internal control leads enterprises to improve self-control and to utilize social economic resources effectively. In regard to enterprises based on network environment , assessment of internal control is conducted in terms of controlling environment, risk evaluation and controlling activities. In the light of general content and presentation involved in internal control assessment, this article also builds a general system of measures for enterprises based on network environment assessing internal control, inquiring into the feasibility and extensity of AHP in quantitative evaluation of internal control. Quantification of internal controlassessment gives rise to the objectivity and correctives about internal control of enterprises based on network environment. It is useful to the realization of self-oriented internal control with all employee participating.