A Compare Research On Internal Control Environment Between Chinese And American Companies

The internal control is becoming more and more an important part of modern business enterprise management in recent years. Some internal control problems, especially the control environment have appeared in the listed companies in Chinese. Which have caused the harmful effect to the business efficiency of enterprises and quality of accounting reports. Therefore, something must to be done to perfect the company internal control, to improve the control environment in China.After making it clear and definite that internal control environment take the interiorly foundation function in the internal control system, according to the fact that COSO framework inside concerning control environment factor only includes some internal environment factors, but no mention of external environment factor, and other constituting part too having no paying enough attention to external environment, we put forward our point that internal control environment should include not only the internal environment factors, but also the external environment factors, reconstructing the internal control environment system. Then basing on the new internal control environment system, we compared the internal and external environment factors between Chinese companies and American companies to find the differences and analyzed the causes. At last, we give some corresponding suggestions to improve enterprise internal control environment in China.