The Internal Control Design On Engineering Management For New World Building Engineering Co.,Ltd.

Internal control is a process conducted by board members, managementand staffs to provide assurance for achievement of goals concerningeffectiveness and efficiency of operating, reliability of financial report andconformation of relative regulations & laws. With deepening understandingand requirement of internal management, internal control is increasinglyadapted by organizations. By designing the internal control system for thereal case, this paper tries to study the design ideas, methods & models ofinternal control, especially for the business of engineering management. By application of COSO internal control theory, this paper makesevaluation on the current status of the internal control system of New WorldBuilding Engineering Co.,Ltd, and redesigns the internal control onEngineering management accordingly. The paper consists of two parts; thefirst part is Internal control system for Purchasing & Storage management,while the second part is for Engineering & Operating management. The firstpart includes six subsystems as Tendering, Tendering for purchasing ofmaterial and plant, Tendering for project paid on labor and material,Tendering for project paid on labor only, Purchasing for small quantitymaterial, and Storage management. The second part includes four subsystemsas Goal management, Contract management, Contract Auditing management,and Project management. By introducing internal control theory to the engineering practice, theauthor furnished, through this paper, the systematic internal control flowchart and list of regulations based on site investigation and data analysis, andthe same has been proved by significantly optimized engineering managementperformance through tried course in the company.