The Effect Of Internal Control Environment Upon The Accounting Monitoring

It is the popular phenomena that the accounting information can not reflect enterprises' true financial condition. Under this position, enterprise generally faces two basic problems: One is to develop the accounting process; the other is to strengthen the accounting monitoring. These two functions must be carried out under some internal control condition. Internal control environment is the foundation of internal control system. When internal control environment being developed, internal control system should run smoothly, and accounting measures should be effectively carried out. However, when discussing the problem of false accounting information, scholars pay more attention on developing accounting system; neglect the function of the internal control environment on accounting. Thus this article will integrate the internal control environment and accounting monitoring to find some practicable measure to improve the accounting quality.This article is divided into five parts. The first one discusses the development of the theory of the effect of internal control environment and the accounting monitoring respectively, their relation, social surrounding and current significance. Then it analyses the effect of every part of internal control environment upon the accounting monitoring. These include comparing the effect of different management style and enterprise culture upon accounting monitoring, listing some problems in the control structure of enterprise in our country, analyzing the reason and putting forward proposals and some relevant measure. Besides, we comment some key problems such as introducing the independent director system, developing internal audit and the human recourse management and so on. Finally, taking up an example about YAXIYA enterprise is to analyze this papers subject.