Research On The Application Of Internal Control Theory In Project Management

With the rapid development of the economy and the enlargement of the enterprises' scale, the investment on project is increasing. The establishment of internal control system for project has become one important aspect to increase efficiency of project, decrease cost, reduce waste, and norm project management. Therefore, our country issued a series of laws and regulations on internal control. Particularly in 2003 the Department of Finance issued 'Internal accounting control standards-project'. They play an active and directive role on the prevention of mistakes. But after all they are only laws. How to carry out them must be further researched. The design of the internal control institution is not only the particular use, but also the necessary request on how to implement the laws and regulations. So this paper is devoted to design the project internal control.This paper has expounded the design rules of the internal control system for project, based on the three theoretical foundations, that is cybernetics, systematic theory, and information theory. Then the author carries out the design of project internal control in accordance with building sequence. And, risk management is brought into the project management. Through establishing the construction project internal control, it is useful for us to guide project management, solve difficulties, increasethe management level, and undertake that the project in investors' control. At the end of the paper, several advices is expounded by the writer to insure that the project internal control can be put into practice.