Research On Risk Appraisal System Of Internal Control

An enterprise decays from inside, so we must begin from inside if we want to seek a survival and development way for our enterprise. Based on this point, Internal control is attached much importance by theory circle and practice circle all over the world. At the same time, market economy is a kind of risk economy. Risk already becomes the focus and keystone of enterprise management along with the development of market economy. In such circumstances, the risk concept comes into the scope of internal control progressively. Come to say from essence, internal control is the management and control function of risk. If there are no risks, we don't need internal control at all. Since the existence of risk is the essential reason of control, processing risk appraisal becomes the basic and key of the entire internal control system. At the present time, COSO Framework is the newly research result of internal control theory and practice. The Framework develops traditional three-elements internal control into five-elements and put risk appraisal into internal control framework as a basic element. This development is the inevitable result of theory developing with practice.This paper concentrates on a basic element of the internal control system—risk appraisal to progress my research. I designed a risk appraisal model based on the measure method of risk degree of Robert Simons' risk exposure calculation model. This model follows quantitating as possible principle and use quantitative method combined with qualitative method. In the model, qualitative tables use asking form and quantitative tables use reformed Walt point system. In order to test the practicability of the model, this paper chooses Shandong Nanshan Industry Co., Ltd as the sample enterprise to checkout. In the end, I improve the model based on the testing and give evaluations.This paper includes 6 chapters. The first chapter mainly introduces the meaning of internal control risk appraisal research, the research status of this topic, the research route,method and the central innovation of this paper. The second chapter is risk-summarizing part. In this part, mainly introduces the concept, characters and sort of risk, the concept and method of risk appraisal and causes of enterprise risk. The third chapter analyses the limitation of COSO Framework and the inspiration of Basel Capital Agreement for internal control. The forth chapter is the most important part of this paper, in this part, I concretely designed the risk appraisal tables. The fifth chapter is the testing and evaluation of this risk appraisal model. The sixth chapter is the conclusion.