The Development And Perfection Of Internal Control System In Chinese Enterprises

This article review the development history of Internal control System and analyzes the influence of Sarbanes-Oxley Act over the company’s internal control system, so that we can analyze the practical affects the ACT has over our company management and internal control, find out how to improve and enhance the internal control system of Chinese companies by referring to the ACT, increase the company’s ability of self-management and risk defense, and expedite our companies’sustainable development, so as to maintain socialist market economy order.The article includes four parts. The first chapter is about the summary of internal control. In this chapter, we will discuss the definition of company’s legal risk, the development of internal control system and the Internal Control-Integrated Framework of COSO report.The second chapter is about the impact of Sarbanes-Oxley Act on the public company and the development of internal control system through the analysis of background of legislation of Sarbanes-Oxley Act, the key articles (Article302and Article404).The third chapter is about the internal control system of China. In this chapter, we will discuss the present situation of China’s internal control system via the analysis of some cases about the failure of internal control system of Chinese big companies, the development of China’s internal control system and the comparison of Sino-US internal report.The last chapter is about some thoughts on how to perfect the regulations of China’s internal control system by the improvement of the internal control cultural, the judicature of liability of the management of the company on internal control, the enhancement of the supervisory of public company and the modification of work pattern of legal affairs.