The Problems Of Internal Control In The Revitalization Of Old Industrial Bases In The Northeast Region

It is very important to continually reform the state-owned corporations in developing the old industrial bases in the Northeast region. In order to constitute modern enterprise systems, we must perfect the juridical person governing structure, strengthen the enterprise management, and establish the systems of responsibility on great decision-making and internal risk control. To constitute and perfect internal control systems is the micro-foundation of developing the Northeast region. At all while the research and discussion on internal control are hot in academe. In the past last majority of research was fastened on the internal control of those listed corporations and only a few is from the view of region to see about the microeconomic organizations. Basing on such a background we took a questionnaire to some corporations in Jilin province. We make research about the status quo of internal control in Jilin province. The article makes up for the lack of research on internal control from the view of region.The paper is composed of five chapters.Chapter One: Literature Review and Comments. The paper begins with literature review and comments from a research about internal control status quo. Then it goes into the research about the disclosures of internal control. Finally I make a conclusion about the literatures of internal control. The emphases of these papers are different in methods and contents. Theoretical research, positive research, survey research and cases research are four main methods in the field of internal control. There is much difference from the research methods between our Chinese and foreign scholars. When most of Chinese scholars emphasize accounting control, many foreigners begin to investigate the disclosures of internal control.Chapter Two: The Influence of Internal Control on the Revitalization of the Old Industrial Bases in Northeast Region. This chapter is composed of three sections. Section one starts from theories of institutional economics. It demonstrates the importance of constructing the internal control systems. The institutional economics pay much attention to the roles of institution in the development of economic. Well, what's the assurance in a company that helps us achieve timely accurate financial information and guarantees the right decisions in the micro-foundation? The answer is internal control. Section two is the review of the origin and meaning of internal control. Additionally, section three goes in to the review of internal control development course and its influences on economic development. In this chapter, there are some important knowledge points associated with the following content. It supports the whole paper.Chapter Three: The Design and Implementation of the Questionnaire Survey about Internal Control. The chapter is devided into two sections, design and implementation. This paper is based on"Jilin Province Senior Accountants Class". We distributed questionnaires to the accountants who attended the class. The total is 550 sheets. We collected 292 sheets back. There are questions about the status quo and implementation of internal control. Basing on the standards which published by National Bureau of Statistics of China, we divide the enterprises into different types according to their organization form and size.Chapter Four: Questionnaire Survey about Internal Control. This chapter is composed of three sections. Section one is the analysis of five elements: control environment, risk assessment, control activities, information and communication, monitoring which compose the internal control system. Section two gives a descriptive analysis on the question"how about the competence of the CPA firms in internal control evaluation and consultation". Section three concludes the problems in the construction of internal control systems.Chapter Five: Countermeasures and Suggestions on How to Improve Internal Control. Basing on the questionnaire, according to the present conditions of corporations in Jilin province, I suggest following measures to improve the internal control systems. First, we should improve the management level of the leaders and make them pay more attention to the constructions of control environment. Second, we should reinforce the measures of risk assessment and guarantee the effective administration of controlling action in case of avoiding the lost of accounting information. The third, we ought to found a system of information with colorful contents and smooth communicating channel. In addition, we should also set up a separate internal audit department who will take hold of the essence of independent audit. They can monitor and evaluate the internal control and correct its defects in time.Effective and logical internal control is the guarantee of stockholders, owners and creditors'right and the base of power balance and also the important measure of constructing corporate governance. It does goodness to avoid the illegal trespass of corporation's assets. Basing on this questionnaire survey, I make some conclusions on internal control. First, internal control is the base of management. It is the foundation in the revitalization of the old industrial bases in the northeast region. Second, internal control in listed companies and financial field is better. Third, the construction of internal control in small enterprises is under standard level. In consideration of cost and effectiveness, small enterprises should reinforce control environment construction and communication with stuff. Four, such control activities as segregation of duties, security of assets, currency control, and seal keeping have been done well. But most leaders haven't paid enough attention to control environment. Information and communication in some corporation need to be improved. Five, the CPA firms can not provide the effective estimation and consultation and some enterprises with poor internal control cannot get enough information which helps them improve their management.This survey relies on corporations in Jilin province. Its scope is narrow and the data are limited. It is very hard to get practical situations of internal control in the whole nation. What's more, in thought of the actual conditions in China, I do not investigate the disclosure of internal control. These are what I should make deep research in the future.