The Research On Internal Control Of International Economic Cooperation Corporations In China

Good corporate governance can promote the value of the corporate, ensure the enterprises' operation efficiency and assets safety, and the financial report be presented fairly. The internal control, which reflects the level of corporate governance, covers the principles of faithfulness and creditability, management philosophy, organization governance framework, business operation style and corporate culture, etc. The internal control also acts as the main management facility to the corporations including the enterprises engaged in the international economic cooperation. Effective internal control system helps the enterprises to get more profit, keeps away from the business risk and protect the interest of the investors.With further reform and opening to the outside of the world, the Chinese enterprises take greater participation in the competition and cooperation in the international market. By implementing the "Going-out" strategy, the Chinese government is also to encourage the domestic enterprises expanding overseas, making good use of the two kinds of resources and markets both domestic and oversea, and enforcing the global competitiveness, so as to guarantee national economy safety. Nevertheless, the enterprises encountered immense challenge and risk when expanding in the international market. Lots of problems emerged in the process, which restrict the enterprises' development and some of them even caused huge loss to the State. It is discovered that most of the problems have relation with the absence or disfunction of the internal control system, therefore, that is a top priority task to take thorough and comprehensive analysis and study to the situation of internal control system in the international economic cooperation corporation, work out the solution to the problems and setup the effective and applicable internal control system or regulation.This article reviews the development of the theory of internal control both overseas and domestic, introduces the core content of COSO framework on internal control and the latest achievement—the Enterprise Risk Management (ERM), sums up the weakness and limitation existing currently in the internal control system of the Chinese enterprises. Based on the theories mentioned, the article also analysis the current situation and special risk faced by the enterprises when being engaged into global economic cooperation and competitiveness. Aimed at the weakness and limitation, some practicable proposals are brought forward to improve the effectiveness and efficiency of the internal control system. The purpose of the article is to help the construction of the internal control system and the improvement of the ability to manage risk for the Chinese enterprises when they are engaged in the economic competition and cooperation in the international market.