Research On Internal Control Of College Based On COSO Report

The Funding Organizations Committee which is associated with American accounting association, the institute of certified public accountants and financial aid organizations proposed a COSO research report the internal control - the whole framework in September 1992. This report is a programmatic document on internal control practice. Internal control refers to the enterprise takes series of activities to examine and evaluate its functional departments and employers'managing ability which are related and intervened with each other with the intention of ensuring the security of the property enterprise accounting information to complete, reliable operation, the realization of the goal to prevent cheating, avoid mistakes, and improve efficiency and benefit. Therefore, internal control is essential for any enterprise or any department in the enterprise.Chinese government began to realize the importance of internal control since 1990s, they reinforced the internal control on enterprises and published several volumes of laws and regulations. These normative documents possess profound influences on so many fields, such as improving the internal control on enterprises at hand, the quality of accounting information and information disclosure system; ensuring audit efficiency and efficient operation of capital market.With the development of market economy, especially after taking part in WTO, the college running form is changed into multi-channels from traditional form which were depend on government financial aid. Then because of the weak internal control, economic cases were ebb and flow. Some illegal ones escape to abroad or invest on one's own business or running stock with funds and so on. Someone makes use of power in hand to get profit by enterprise reconstruction, reorganization, auction, leasing property. Therefore, college's internal control construction urgently needs to be strengthened.This dissertation takes the"A"college as an example, focus on the research and analysis the"A"college in the internal control of the shortcomings and the insufficiency, and put forward the countermeasure perfecting internal control both practically and theoretically. In the light of the COSO report, related laws and regulations, and combined Chinese scholars to internal control research achievements, the paper analyzes five aspects of internal control of the"A"college, including controlling environment, risk assessment, control activities, communication and exchange activities, the monitoring. The results show that internal control environment is not strong enough as scheduled, which can be concluded from the following factors: the unreasonable agency settings, temporary organizations, some employers'twisted values for the pursuit of personal or group interests, lack of effective risk evaluation mechanism, ineffective control activities or control system and so on. The hierarchical system causes the communication impediment, and then an effective supervision becomes impossible.For solving those problems, the author proposes some strategies: First, improving the inner control environment through the organization adjustment, well staff values'training and strengthening human resources management way. Second, establishing and perfect the risk evaluation mechanism to avoid financial risks and management risks. Third, strengthening control activities, especially the system control, further making the internal control procedures perfect. Fourth, establishing flat network information platform to strengthen the communication of information. Last but not least, paying special attention to the internal audit work, introducing external audit to effectively control each economic activities in"A"college.