On Preventing Commercial Bribery Through An Internal Control System

Commercial bribery is damaging to a society by corrupting the political system,damaging social values,and above all,retarding the progress of economy.Preventing commercial bribery has,therefore,become a major task for judiciary and the law circle has been striving to work out more effective ways to handle this issue.Meanwhile,with accounting and financial fraud cases disclosed frequently which undoubtedly brought great negative impacts on the capital market and even social economic system as a whole,how to control commercial bribery through an internal control system has become the focus of attention both for theorists and actionists.This research,based on a thorough analysis on the relationship between commercial bribery and internal control and taking an economical perspective,seeks to build an anti-commercial-bribery system by way of internal control policies.A questionnaire research is carried out and results refer strongly to the following conclusions showing the dynamic relationship between commercial bribery and the five elements of internal control:1.Internal control environment provides a basic possibility for commercial bribery.2.Internal risk appraisal can become an incentive of commercial bribery.3.There exists a negative correlation between the effect of internal control and commercial bribery.4.Efficient communication between enterprises and administrative divisions can help prevent commercial bribery.5.Commercial bribery practice is often influenced by how effective or lax the supervision system is.Based on above results and relevant analysis,the thesis puts forward solutions as follows: First of all,there should be a clarification between the rights of administrative government offices and that of enterprises and institutions,and effective supervision should be implemented on the managerial as well as operational process.Secondly,internal control environment needs to be improved.Thirdly,Encourage enterprises to do risk appraisal according to its goals.Next is to stress on regulating the construction of internal control system and policy implementation.Fifth is to build smooth communication channels between enterprises and administrative government divisions.Last but not least,seek an efficient integration of internal control and external control.