The Evaluation Report Of Internal Control System Of HN Corporation

Demonstrated by the practices of management, all the management activities begin from establishing and optimizing the internal control system and all the operation activities must carry out under the internal control. For any organization, regardless of its size and profitability, internal control system plays a very important role in its management process. It has been demonstrated by the relevant theories and practices that the faults in an organization, the losses of profits and the waste of resources must be in connection with a deficient internal control system. We should draw useful lessons from these. Since 1930s, U.S. and some other western countries had begun to make efforts in the study and research of internal control theory and practice. In 1990s, an internationally accepted report of internal control, Internal Control---Integrated Framework, was issued by COSO. This report will be used for reference in the evaluation of the internal control system of HN Corporation. According to the theories of internal control and the COSO evaluation tool, the investigation and evaluation procedures were carried out from Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. Based on the analysis of the evaluation result, some suggestions to the cycles with significant deficiencies of HN Corporation were made.Through this investigation and evaluation, the deficiencies of the internal control were detected, and the sense of internal control of the management, especially the senior management, was intensified. Also, it was very helpful to HN Corporation to optimizing its internal control system and improving its management level.