The Research Of Financial Risk And Internal Control Of Business Enterprise

Since the national economic reformation and open,our country appeared unprecedented increasing speed. People live happily and living level continuously increased. What's more the national synthesize strength was constantly strengthened. But what is not allowed to neglect of is that along the high speed economic developing,especially in the turn of new and old system the economic environment is more complicated. People's thought and mind increasingly diversified. So some units' internal control and management have been weak and some new economic crime cases appeared which bring some business enterprise big financial risk and existing risk. For example some people take a mount public money escape abroad. Some people use the public funds to buy and sell stock. Some people make use of the opportunity of reformation to take bribes etc. Reasons of these economic crime cases are complicated. However,the internal control of unit not sound management weakening is among them of an important factor. Last two years,our country accountancy and whole management realm need internal control system increasingly and severely. Its source is that under the stimulation.of domestic and international successful experience with greatly aggrieved novella,our party and government agency and business enterprise and other not-for-profit buildup more and more incline take internal control be the way of solving fundamental problem and suppressing lead cadre to corrupt. The another use is to stopping the state-owned business enterprise property run offing,evade the business enterprise and other not-for-profit buildup's risk and stop the deceitful accountancy information to enter the stock market then to whole society.The financial risk is the possibility that an actual financial standing deviate the financial target. Internal control is the method,measure with procedure that guarantee business activity's validity proceeds and the safety of assets etc. Essentially internal control is the emollient means prevent the internal financial risk of business enterprise. Preventing the financial risk is the ultimate end purpose todevelop internal control. Announcing of these two norms into practice will necessarily develop very important promoting function for us to carry out accountancy law and enhance the internal accountancy control and standard socialism market economy order.Despite establishing perfect internal control is the important mission in the state-owned business enterprise reform and the local people of different walks of life is all considers deep and trial this important reform measure,but since then people have not obtain common ground about internal control. What is the meaning of internal control? How to position it? What's the principle of designing internal control? How to design it? There are rifts about the viewpoint of people to all these problems.On the basis of analyzing the inside meaning and outside postpones of the concept Inner Financial Risk this thesis elucidate the development process of internal control and bring up the definition of internal control. The definition is that Internal Control is a system to guarantee reasonably the performance of unit operates activity,dependability of finance report and following of laws. It pierce through in all processes of operating the activities,such as control environment,risk valuation,control activities,information and communication and direct etc. These factors suffer board of directors,management stratum and other personnel of the business enterprise influence. This text is detailed to analyze the five greatest main factors of internal control,he five greatest main targets,the ten greatest main methods,five-design principal,six design step and three design form. This thesis analyzed the localization of the internal control in detail and point out that internal controls have got the ineluctable localization. This thesis completely delineated the whole structure of internal control and the method of its design,and made the beneficial quest in theory and in p...