The Research Of Setting Up Enterprises Internal Control System

The enterprise management requires normalization. The accounting scandal, which occurs in some big companies such as American Enron Company, has sounded the alarm to the people. In order to realize the truthful and reliable of the operation benefit and financial report of the enterprise, and to make the laws and regulations be followed, the internal control system which run through the whole process of the enterprise management activities must be established so as to self-check, self-restrict, and self-regulate the internal business activities, and to standardize the supervisory routine.Currently, to pursue the internal control system in China still exists some difficulties. It is only an emergency action taken by some offshore quoted companies in order to meet the quoted local laws and regulations requirements. To use the internal control under the international agreed and approved systematic frame, these enterprises are run neck and neck, and there is no domestic precedent to be used for reference, and it is impossible to totally and indiscriminately imitate the abroad model. And for the foreign companies, it is also a new challenge for meeting the requirements of Sarbanes-Oxley Act. We still have long way to go to systematically and scientifically research the internal control system. We still not propose the internal control standard system with high authority similar to the American COSO report. Therefore, it has great significance to study and solve the problems existed in our national enterprise internal control system establishment.The essence of the internal control system construction is how to plan the system. The overall concept for planning the internal control is to carry out work as scheduled through drawing on the internal control theory, selecting the frame of the internal control system, consulting some examples of the internal control, combining with the actual management of the corporate according to the laws and regulations on internal control. The design of a sound internal control system needs to be evaluated and modified at any time with the change of business involved. How to make the internal control system run effectively and update, maintain available is the essence for ensuring the corporate to realize its goal.A good internal control system should meet the following criteria: firstly, try to control all links and all aspects concerning the corporate business without any controlling dead space, that is, all the business managing activities of the corporate have been incorporated into the scope of internal control; secondly, affairs and rights are classified clearly and specifically, which is strongly operable, that is, the internal control rule can truly become a code of conduct to those corporate managers and is easy to operate; thirdly, control program code and in-process control are laid special stress on, that is, a scientific mechanism shall be formed for internal control, especially put the control of business managing process in the prominent position to take preventive measures through controlling; fourthly, provide good control results to allow the functions of the internal control system to bring into full play.