Investigation On Aviation Passenger Revenue Settlement Processes Of Eastern Xibei Airlines Under The Sarbanes-Oxley Act

Risks arising from the uncertainty of manufacturing and operating processes often have great impacts on the fulfillment of an enterprise's business strategies and even its quick, healthy development. Therefore, to survive and attain further development, risk management is a subject must be treated seriously. Any successful corporation must be well managed by experts who have fully awareness of the importance of risk management as well as a good command of internal control theory, Establishment and implement of internal control regulations must be put to a high priority both on the process level and the corporation level.On 2002, the US federal government issued Sarbanes-Oxley Act (SOX act). By referring to the COSO frame, the SOX Act has set standards for internal control both on the process level and corporation level so as to strengthen corporate responsibility and inspection from the stock exchange committee. As a listed company in the US stock market, China Eastern Airline (CEA) has to revise to comply with the SOX Act to guarantee its legal status.This thesis starts with the review of domestic and foreign internal control theories. Section 404 of the SOX Act, the COSO report on Internal Control-Integrated Framework (IC-IF) and Enterprise Risk Management-Integrated Framework (ERM-IF) have been expounded thoroughly.Then, combining with real work experience, the author has discriminated and analyzed the potential risks in aviation passenger revenue settlement process of Eastern Xibei airlines. COSO ERM idea has been applied to the analysis of internal control. Based on results of the analysis, standard procedure documents with related flow diagrams are compiled.Finally, the author has completed the research by giving out adequate explanation on the results. And it would be clear that internal control system on a process level under the guide of COSO frame complying with the SOX Act is of great importance to corporation risk management.Research work done in this thesis has practical meaning on the application of either SOX Act or COSO frame to the internal control of civil aviation corporations. This thesis can also serve as a valuable reference for any Chinese company to be listed in the US market for financing.