The Research On Internal Control System Theoretically And Practically

An internal control (hereafter shortened as IC) system is a must for a successful enterprise whether in China or elsewhere in the world. In a society with market economy, establishing a modern corporative system and conversing the operational mechanism to make enterprises become competitive entities in the marketplace will be a principle task and a long-term goal for China's reform on its enterprises. IC system will play a major role in modern corporate governance by assuring smooth completions of all works and rising operational and management levels in an enterprise. Therefore, this thesis conducts some research work and discussions on IC system theoretically and practically.The content of this thesis is divided into 4 parts in terms of its structure. The first part simply looks back the 4 stages of IC development with some meaningful hints. The second part concerns the relations between IC and corporate governance, internal control trust agency and information asymmetric. Based on the "Internal Control Integrated Framework"(the COSO report) of The Committee of Sponsoring Organization of the Treadway Commission , the third part, releases the 5 factors of enterprise internal control structure from the stance of a conformed research , and the body of IC-internal audit .Then discusses corporate information released on IC and its internal and external evaluation. The last part firstly analyses some IC problems currently existing in Chinese enterprises and then objectively provides some suggestions on how to improve IC situation for these enterprises. 1) fastening construction on regulated IC systems, 2) further perfection on corporate governance structure, 3) strengthening awareness of IC among its management and all its working staff, 4) raising the personal quality and IC levels among accountants, 5) strengthening the internal auditor's re-controlling role and its service function, 6) establishing a reasonable and effective inner stimulating mechanism, 7) imposing compulsory IC information release on listed companies, at the same time regulating and integrating the content and format of IC information to be released.