A Study Of Internal Control Based On Events Idea

Internal control system is an effective tool to enhance economic management, to heighten the effect, to protect property, to achieve aims and policies of company. It's widely used and plays an active role in developed countries. But it presents a different phenomenon in China. Top 500 Global corporations and multinational corporations last 40 years averagely, but the number drops to only 6.5-7 in Chinese companies and 2.9 in private enterprises of China. So it's critical to improve internal control system in our companies. The thesis focuses on integrality of internal control's design and validity of internal control's operation, from the point of events idea.The thesis talks about building internal control system based on events idea. It's divided into six parts. The contents of this paper include: Chapter 1 introduces the paper's theoretical reasons and main contents. Chapter 2 is the profile of internal control. It introduces development of internal control theory and necessity of internal control firstly. Then it points out the flaws and essence of internal control. Chapter 3 gives the definition of event and discusses integrated reasons between internal control and events idea. Chapter 4 which is the focus of this paper analyzes theoretical research of internal control based on events idea. On the basis of narrating the internal control objective, this part explains guide thought, basic principle and construction steps of internal control. In addition, it carries on social and technical research of internal control. Chapter 5 discusses the application of events idea in the foundation of internal control. It firstly introduces principle of internal control based on computer and designation idea of database. Then it brings forward operational claim on internal control system. At last it is a practical demonstration of internal control construction taking sale business progresses for instance. Chapter 6 gives the conclusion and proposes certain suggestions on the building of internal control.The innovations of this thesis are illustrated in three aspects. (1) Internal control is no longer only thought as a technical topic, it is also a social problem. In view of this, the thesis emphasizes the importance to create a "people-oriented" control environment as well as technical measures in the progress of internal control construction. (2) This paper adopts "REAC" model and "three- flows" system. REAC is extended form of REAL. The former delivers more comprehensive event information than the latter. "Three- flows" system divides the enterprise's progresses into logistics, and capital flows and information flows. It's helpful to sort out the relationship between the processes. (3) Events idea is inducted to the construction of internal control for the first time explicitly.