The Research On The Risk-oriented Internal Control Of Tongli Auto Trade Company

Internal control is an important means for modern enterprise management, which is also an outcome of social economy development. The reaserch on the internal control system starts later in China. However, it is a topic that has been discussed more by Chinese academic circles and paid more and more attention by Chinese enterprises. In order to perfect the disadvantages of the enterprises and public institutions'internal control, our government has also introduced policies on internal control and related laws and regulations in succession in recent years to sovle the disorder of internal management and weak internal control. The auto industry has developed rapidly in the last 10 years in China. For instance, the main new enterprises 4S Shop. However, the internal control building is still imperfect. The unreasonable phenomenon such as insufficient implementation and supervision for internal control has increased the business operation risks and finaicial risks.Risk-oriented internal control represents the development tendency of internal control of modern enterprises, which lays more emphasis on the effectiveness of risk management and the soundness of corporate governance structure and plays an important role in perfecting risk management.This paper takes Tongli Auto Trade Company as an example. First, it sets forth the development of internal control theory and points out to analyze the current situation and problems of internal control by using the new structure. Propose the necessity of using COSO structure—Risk management theory by reviewing the the development of internal control theory; Then build the risk-oriented internal control system for Tongli Auto Trade Company by using the struture theory and forecast the prospect. The system includes 8 elements, which are internal environment, goal setting, event identification, risk assessment, risk response, control activities, information and communication and supervision.