A Research On The Internal Control System Building Of China Unicom Of Jilin Branch

With the continuous development of marketing economy in china, nonstandard behavior behaves often in a strict marketing competition and during the conflict between the new system and old one. The core reason existed is internal control troubled in enterprises. These years, Chinese enterprises pay more attention to the internal control and its research and application. Related departments have declared a series of principles and supervising suggestions by which internal control of enterprises and its system principle have been established and improved. Capitol Hill issued the Sarbanes-Oxley aiming at the financial swindle of large American company Enron and WorldCom Inc. Term 404 in Sarbanes-Oxley claims that the financial statement and internal control process of all companies on the listing of corporate bonds should be assessed and audited yearly. Therefore, the internal control system plays an important role in enterprises'survival and development, also places in a significant place.On the basis of understanding in Internal Control Theory, this dissertation analyzes firstly the necessary of Jilin Unicom Company's internal control system construction, the guidance, basic principles and implementation outline in details. Then it summarizes the experimental achievements to offer the construction suggestions to other enterprises.This dissertation comprises of 4 parts as followed:Part 1: Administration situation and main problems in Chinese Unicom CompanyPart 1 introduces some issues existed in Jilin Unicom Company such as income running off, weak control on sales cost, incomplete and untrue customer's archive. It gives an example to explain the differences among the aboard Accounting Standard and Chinese Accounting Laws and Accounting Standard. Meanwhile, it represents the necessary that Jilin Unicom Company establishes and constructs the Internal Control System.Part 2: Objective necessary of strengthening internal control in Jilin Unicom CompanyPart 2 gives an analysis of the Objective necessary of strengthening internal control in Jilin Unicom Company from the view of external circumstances. Chinese legislature has issued a series of rules of law. Capitol Hill has passed Sarbanes-Oxley in 2002 and declares the strict terms for regulating all companies on list of corporate bonds. Jilin Unicom Company must strengthen the construction of internal control system to improve the administration level and to meet the requirements of aboard Regulatory Commission, furthermore to maintain the investors'profits and company's integrity.Part 2 also introduces the framework of internal control system in Jilin Unicom Company which comprises of anti-abusive conduct management, moral behavior regulation, control activity and relative archive, division principle of incompatibility position, corporate disclosure regulation, risk assessment and internal control auditing etc. This part explains some renew principles compared with the new and old internal control system. In end it points out the signification of internal control system construction in Jilin Unicom Company.Part 3 Construction of Internal Control System in Jilin Unicom CompanyPart 3 firstly introduces the internal control system's guide line of Jilin Unicom Company, the idea of which is appraised as the best"internal control frameworks"theory. This theory is consisted of three goals and five factors. The three goals are the credibility of the finance report, the efficiency and effect of running and the obedience of relative law and rule. There five factors in the control circumstances, i.e., the evaluation of venture, the activities of control, the information and communication, intendance. Then there will be translated the three goals and five factors into the aim and assuring factors of the Unicom Company. And according it, there will be formed the base construction principle of Internal Control System's in Jilin Unicom Company.According to the practice process of Jilin Unicom Company internal control construction, it introduces the implement points of Jilin Unicom Company internal control construction in details, which includes the two main parts, company layer internal control points and activity internal control points. The first one aims at the internal environment construction of the whole company, which comprises of 13 aspects, for example, profession moral behavior regulation, national auditing office supervision, accountant policy and procedure, finial finance report, directorate and higher management layer supervision, manpower resource management, functions and rights distribution, anti-abusive conduct, risk assessment, management performance analysis, internal auditing function, management layer ego-evaluation, corporate disclosure regulation and so on. The other one confirms some important problems of management and finance internal control and management from controlling activity aspect in some phase of now and future, which are necessary.Jilin Unicom Company has passed the internal control of Sarbanes-Oxley in 2006, which is one success in constructing internal control, and the company made a lot progress in building engineering clear, project warrant and cost control. But because of the short time, it still needs essential observation value , observation space, and the scientific cost benefit analysis, which is the attention keeping on in future.