Research On The Framework And Implement Of Internal Control Of Group Company In China

Group company which is fit for the development of productivity and the request of the market economy is an advanced form of enterprise organization. And it is different from the other economic organization and brings important affection to economy development, society configuration and so on. In recent years, financial fraud and the defeated control of underling corporation has emerged,which has huge influence on our social life. So internal control is receiving increasing atteniton.The article provides a view on a particular enterprise-group company for the purpose of enhancing its internal control, promoting its development and strengthening a country's economy.Internal control's evolution and theory are interpreted as the research starting point, on the basis of absorbing the internal control with such domestic and international research results, according to the characteristic of group company in China, try hard to structure the framework and implement of internal control of group company in China. First of all, the article mainly discusses the basic theory of internal and the group company which explicates the theoretic foundation and the research space. Then, analyses the existence problem of the internal control of group company, and tallies up the internal control problems in group company. Finally, on the basis of the above research, discuss the framework and implement of internal control of group company in China. In the framework of internal control of group company, we pay high attention to discuss the aims and the framework elements of group company's internal control, and we also discuss the implement of group company's internal control from three aspects: environment control aspect, control mechanism aspect and monitor and prompting aspect. In the end,we use a case to validate the implement of framework of group company's internal control.We believe that internal control is an effective means to carry out the strategy aim of group company. Internal control of group company which is established on the commission agency between parent company and subsidiary company, the core is capital control,the key is financial control,and the focus is to construct the framework and implement system. At the same time, we also point out that the construct framework and the implement system of internal control of group company should base on national conditions and strength control of soft-environment.