A Stakeholder Perspective Internal Control System Research

With the increasingly fierce market competition, enterprises are facing the risk ofrendering the complexity and diversity of the trend. Internal control is to control andbasic protection against business risk, financial risk, but also to ensure that normalbusiness activities as well as an important force to achieve sustainable development, andestablish a sound internal control as the key to business success of production. At thisstage, all aspects of the emerging about internal control at home and abroad, moreillustrates the necessity and importance of the study of the internal control. Existinginternal control to build a system to adjust to the normal operation of the enterprise, andthe effectiveness of internal control is the key to study the internal control system built.Building of stakeholders as the core of the enterprise internal control system is not onlythe needs of the stakeholder theory and internal control theory developed, it is thenormal operation of enterprises and prevent significant internal control importantguarantee of failure events.In this study, mainly from stakeholders on the basis of the latest research results athome and abroad on internal control, risk management, corporate governance,management, control and corporate culture research perspective, fusion the enterprisecollective choice theory, the use of normative analysis, case studies, supplemented bythe method, combined with the capital forms of control rights the division of thecorporate form of classification, build a stakeholder perspective of the internal controlsystem.This article along domestic and international literature review-internal controlsystem concept study-control the borders of the internal control system-the basicframework of the internal control system constitutes the internal control-the capital ofcontrol rights Enterprise Classification-a single form system Research-Research avariety of forms internal control system to study in this context. First of all, thestakeholders theory and collective choice theory about the theoretical foundation of theenterprise boundary, from the stakeholders perspective of the internal control systemconcept scientific reconstruction, clear the scope and functions of the internal controlsystem. Second, corporate governance, management control, internal control and riskmanagement framework integration, presented the basic framework of the internalcontrol system is constituted by the basic control elements and spscific control elements.Classification study again, according to the morphology of control over the capital ofenterprises, so that to build classification provided the theoretical basis for the internalcontrol system of enterprise. Finally, in the enterprise category were constructed on thebasis of a single form of internal control system and a variety of forms of internalcontrol system, and ultimately the formation of corporate control over physical capital, corporate control over the human capital and social capital enterprise Internal Controlsystem; combination of the two and three capital forms and full participation in avariety of forms of control over the enterprise’s internal control system build.The main conclusions: First, this paper corporate governance, management control,internal control and risk management, the four integrated unified enterprise internalcontrol system, so that corporate governance is the foundation souls, managementcontrol is specific operation, internal control interspersed assurance and riskmanagement integration framework. Second, from the stakeholders perspectivereconstruction of the conceptual system of internal control, and described as "internalcontrol system is a dynamic management process, it is the business owners or theiragents by the one or more control body implementation the corporate structure control,and control of corporate culture applied to internal control within the boundaries of,aimed at identification may affect the control of the main potential risk issues, riskcontrol in the capacity of the main risk of the control, and the main target for thefollowing control to provide reasonable assurance: the relationship between the businessowners to maximize the benefits and business owners and other stakeholdersoptimization." Third, the internal control system of internal control of the border toexpand to Stakeholder range. Longitudinal extension and lateral expansion of theoriginal scope of internal control based on breaking down, the original internal controlslimited to business management, and extending longitudinally to the level of corporategovernance structure, shareholders into the control within the boundaries of theenterprise; standing stakeholders by the height of the theory, a new understanding of thenature of the enterprise, thus confirming control subject to horizontal expansion to therange of stakeholders. The nature of the firm is the Enterprise Contract Selectioncollective reach an acceptable equilibrium. Fourth, the risk management frameworkbased on the reintegration of the basic framework of the constituent elements of theinternal control system. Corporate control structure and control elements of thecombination of the stakeholder theory, under the guidance of the internal control systemis divided into two basic control elements and control elements for the internal controlsystem. Basic control elements include: corporate structure control elements and thecorporate culture of the control elements, the composition of the two elements ofinternal control "hard control" and "soft control" complement each other, Brilliance.Specific control elements are the basis of specific subdivision functions from the basiccontrol elements. Fifth, build a single form of the corporate form of classificationaccording to the form of control over capital and forms the internal control system. Inaccordance with the capital form of control rights enterprises are classified to achieveeffective docking of "people-control rights-objects ". A single form and forms ofenterprise internal control system in accordance with the business owners-corporategoals-basic control elements-specific control elements "ideas, and ultimately achieveenterprise internal control system for each type of business building.The main contribution of this study is reflected in the following aspects: First, thearticle will corporate governance, management control, internal control and riskmanagement, the four unite corporate risk control system of internal control, corporategovernance is the foundational soul, management control is a specific operation, the internal control is interspersed assurance and risk management integration frameworkapplied to the internal control system and make it four. Second, the joint decision of thestakeholders theory and the theory of collective choice theory of firm boundariesapplied to internal control. Internal control is no longer confined to the "the shareholdergovernance" level, but from the stakeholders perspective to discuss business goals,control the main and enterprise control system. Third, from the stakeholders perspectiveof the corporate culture as a basic control elements of the internal control system,control elements of "hard control" as "soft control" of the internal control structure ofthe internal control system has played a good supporting role. Fourth, In accordancewith the capital form of control rights enterprises are classified to achieve effectivedocking of "people-control rights-objects "."Business owners-corporate goals-basic control elements-specific control elements "a single form and a variety of formsof enterprise internal control system of the building.