Internal Financial Control Of Chinese Enterprise Groups

Recently, our Chinese enterprise group have rapidly developed. But they haven't entirely shown scale advantages and haven't really constituted corresponding internal financial control mechanism and system. At present ,those questions which have been uncovered more or less derive from the unhealthy or imperfect financial .whether enterprise group reinforce financial control or not is the key of consummating their internal management.This paper divides enterprise group into two layers: group enterprise and member enterprises, and put emphases on how group enterprise control member enterprise through finance. Firstly, this paper analyzes the actuality of our enterprise group and points out that it is the impendence of reinforcing financial control for enterprise group. Secondly, from the core of financial control - centralizing or empowering , it discusses their necessities and principles, and indicates that the optimal assignment of decision for enterprise group makes the lowest total cost of decision. Thirdly, integrating with our Chinese enterprise group' characteristic and successful experience, the paper studied in detail the keystones of internal financial control and also investigates how to insure the implement of internal financial control through fond, financial organize, system and audito The paper tables improving proposals from internal financial control for enterprise group, set up the frame of internal financial control, and also offer the reference for large-scale and medium-scale enterprises' reinforcing management and enhancing internal control.