Internal Control System Designation Of Modern Enterprise

Effective and perfect internal control system is a basis on which enterprises operate production and perform business activities smoothly. Chinese enterprises have not emphasized enough on the system, and the current situation of the system is in the junior stage with obvious deficiency in a lot of place. It is a problem brooking no delay to how to design an effective science internal control system making enterprise development healthy speedy and sustained. With the system theory, the control theory, principal-agent theory as the beginning, the thesis uses empirical research method. By analyzing the system's implementation in a junior stage, the reason, the system objective and the content, expounds the internal control system design principle, the step and the implementation way.The internal control is a king of economy management system basing on scientific theory .we ought to make the system built in enterprise operating activities as advanced management method. However, China's internal control system in the implementation does not achieve the desired results because weak internal control aware , lower quality of personnel, lack of internal control mechanism. These are reasons that cause the system is not perfect. As a kind of economic management and control systems, internal control should ensure that the overall corporate effectively, and internal control objective should transform for the enterprises goal, and the contents of internal control should be involved in business activities in its entirety. From the vertical-level structure, contents of the internal control system can be divided into internal governance control, management control operations control ;from the common feature of control procedures, the contents of the internal control system can be divided into goal-setting, risk identification and assessment, control activities , Information communication and control supervision. Hence, the internal control system should be designed to follow the system as a whole, goal-oriented, cost-effectiveness of the principle of reciprocity, according to the establishment of the objectives, risk assessment, established control measures and steps were carried out. Internal governance control is the first level of the whole control system, to ensure fairness and efficiency; management control is the second level, to ensure that enterprises operating efficiency and effectiveness; operating control is the third level, to ensure the security of property material integrity, and ensure operational efficiency. Only three levels of control are effective, can internal control system perform smoothly. In addition, the control environment has a direct impact on the establishment and implementation of their internal control system. Therefore, effective implementation of internal control is up to sound internal control environment, appropriate governance control mechanism, scientific management control process and effective operating control method.