Study On The Evaluation Model Of Internal Control Based On The ERM Framework

In the current environment of financial crisis, enterprises need a real-ti 'me monitoring internal control system to improve their risk management le vel. COSO Internal Control Committee of United States is the most authori tative research institution in the international field of internal control. In 20 04, this Committee issued "Enterprise Risk Management--Integrated Framew ork" (ERM Framework) formally which acts as a developing and improving issue of "Internal Control--Integrated Framework" published by the Commit tee in 1992. ERM Framework has exerted a profound impact on the enterp rise's internal control and risk management.The research and application of the internal control of Chinese enterprises is in the late start. And our country does not put a unified internal control framework until now, which makes our assessment of internal control are not optimistic about the current situation. In a growing number of Chinese enterprises began the trend toward internationalization, and evaluation of internal control is becoming a bottleneck impeding business growth, so learn from the most authoritative international ERM framework to conduct evaluation of internal control of Chinese enterprises, This situation is particularly urgent.This article designs the evaluation indexes based on the two important dimensions of the ERM Framework and sets up a new internal control ev aluation model with Analytic Hierarchy Process and fuzzy math. This mode 1 can provide a better method of internal control evaluation and help enterp rises make early warning and deal with the crisis more objectively, accurate ly and comprehensively. With this model, it makes enterprises to strengthen internal control in a targeted way in the future course of evaluation of cri tical control points. This paper also proposed an industry crisis coefficient λ, the coefficient combines internal environment with external environment, which makes evaluation value derived from the evaluation model can comp are companies in different industries.Finally this paper makes an empirical analysis of internal control evalu ation with China Shenhua, which is the coal industry leading enterprise. An d put forward recommendations for improvement combined with the evaluat ion of the internal control.