Study Of Internal Controls In North Company

Beginning in 2004, the state launched a comprehensive market-oriented reform of grain circulation system to allow and encourage multi-market entities involved in food operations, will be fully state-owned grain enterprises into the market, it truly autonomous, self-financing, self-restraint and self-development market competitors and independent legal entity. June 28, 2008, the Ministry of Finance, Securities Regulatory Committee, the Audit Commission, the Banking Regulatory Commission, the Insurance Regulatory Commission jointly issued the five departments, "the basic norms of internal control", "Basic Standards" The promulgation and implementation means that China has established system of internal control standards to protect the interests of investors. But the state-owned grain enterprises need to be resolved is how under the "basic standards" requirement, combined with its own characteristics and establish a sound internal control system.Papers object of study is North Company - a state-owned grain enterprises, its existing internal controls were studied. Paper first describes the internal control theory, expounded the concept of internal controls, elements, objectives, functions and limitations, etc. Then, the paper introduces the basic situation of the North's. Paper survey and analysis of the North's internal control system and internal controls implementation, summary evaluation of the results, and further pointed out that its lack of overall strategic objectives, internal control objectives are not clear, there is inadequate internal control environment, no implementation of a comprehensive budget management , procurement service control is not standardized, foreign investment decision-making process and management system is flawed and does not play a supervisory role and other internal control deficiencies. On this basis, the paper presents a perfect internal control recommendations of the North, including the establishment of corporate strategic objectives and internal control objectives, improve their internal control environment, establish and improve a comprehensive risk management mechanism, establish and improve a comprehensive budget management and control, procurement business process reengineering, investment in business process reengineering, to strengthen internal oversight role.Papers will help North company establish a more rational and improve the internal control system, and thus more effective in achieving the objectives of internal controls and improve the management capacity of enterprises to promote the healthy development of enterprises. The role of a certain reference to other enterprises, especially state-owned grain enterprises.