The Research On The Problems Of Internal Control About Firm A

Since last century, some well-known companies' financial fraud cases have broken out globally which caused significantly economic losses. Under such circumstances, many countries have carried out relevant laws and regulations in order to regulate companies' behaviors. COSO report and Sarbanes-Oxley Act provide guidance for the construction of corporate internal control, the introduction of new COSO report also has caused the research boom of internal control and theory evaluation. In China, some related departments and theoretical communities paid much attention to the issues of companies' internal control failure. In 2008, China Finance Ministry, Securities regulatory commission. National Audit Office, Banking Regulatory Commission and Insurance Regulatory Commission jointly published the basic norms of firm's internal control and its supporting draft guidelines, all these actions contributed for standardized support of our firms'internal control. Practice shows if companies want to realize its gross target, avoid risks effectively and take the opportunity, they should maintain perfect internal control system and effective evaluation system which could ensure the implementation of internal control effectively. The evaluation of internal control is of great importance, it can help enterprises to find defects in the operation and management. It is largely significant for enterprises to strengthen internal management, establish a sound internal control system, and promote the realization of the internal control when they evaluate the internal control. From our current research status of internal controls, the majority of scholars is only in the internal control and internal control information disclosure, while slightly less involving the internal control evaluation. Although the government has issued the relevant regulations of internal control, but it is rarely associated with the initiative of the evaluation system; and most of our businesses did not pay attention to internal control evaluation, the evaluation job is arbitrary and informal, not to mention the evaluation system. Thus, it is necessary for us to do some research of the construction and evaluation of firms' internal control, to found a workable system of internal control and to further perfect the construction of firms' internal control.My thesis firstly uses the combination of normative and empirical analysis to summarize the current status of internal control abroad and domestically. Second, I introduce the related theories and articles about internal control. Finally, I try to rebuild its internal controls and establish a corresponding evaluation system based on the current situation of firm A's internal control.