Research On WEGPC's Internal Control Assessment Under COSO Framework

Along with the China's Basic Standard for Enterprise Internal Control (C-SOX) and the assoiciated guides issuing since 2008, enterprise internal control system in our country steps in a high-speed development. The Basic Standard is intended to bring stronger corporate governance to China's listed companies and to improve their internal control. The new rule requires listed companies to conduct self-evaluation of their internal controls, disclose an annual evaluation report and employ qualified agencies to audit the effectiveness of the controls. After establishing and implementing effective internal control, it focuses on enterprise how to perform internal control assessment and how to assess the effectiveness of its internal control system. Internal control assessment theory itself or its practice is insufficient in China.This paper firstly introduces the four stages of internal control theory, overseas and domestic research on this theory and evolution on regulation, then outlines COSO internal control framework, interprets and makes deep analysis on concept of internal control assessment, and relevant backgrounds, principles, content, organization, method etc. Secondly, it introduces the company empirical studies of WEGPC internal control assessment process with its focus on implementation basis, scope, content, document, report etc. Some improvement suggestions are made in the end of this paper, such as applying CSA (Control self assessment) and WSR (Wuli-Shili-Renli) method to strengthen the integrity of internal control system, and designing the Comprehensive evaluation model to improve its quantitative assessment, and promoting its efficiency by combination of assessment result and performance evaluation. Meanwhile it's hoped that this paper can bring forward some suggestions to domestic company on internal control assessment operation.