Study Of Designing Iternal Control

With the development of marketing economy in China, the critical role of internalcontrol in management is confirmed, and managers put more energy into buildinginternal control system in their companies than before. But in China, there is noready models and methods on designing internal control while relation managing ,rules and policies take place of internal control.Based on COSO Report, the author studied the designing and evaluating on internalcontrol especially in production cycles. The theme consist of four parts : preface,overview of internal control, the designing of internal control, production cycle andconclusion. In designing internal control, these steps are followed: perfecting theenvironment, divide the operation into independent cycles;confirm the goals ofproduction and payroll cycles, analyze the risks in these cycles;based on the analysisabove, set the flow, find the key points of internal control, and designing policies;indicate the model of internal control using flowchart and policy table. Finally, drawthe questionnaires evaluating internal control.