Research On Middle And Small Of Foreign Enterprises On Internal Control

The main content of this thesis is the comparison of the internal control environment impact for two small industrial foreign companies under same internal control system.The reason for this subject is that the writer has to improve the internal control system of the two companies but with different result under same internal control system.The main concept of this thesis is according to COSO "Enterprise Risk Management-Integrated Framework" to verify the effect under different control environment.According to the concept of the COSO "Enterprise Risk Management - Integrated Framework",enterprises have four targets:Strategy Target,Operational Target,Reporting Target and Compliance Target.In order to drive the target,enterprises set up risk management system and policy.Risk management consists of eight elements:Control Environment,Target Setting,Event Identification,Risk Appraisal,Risk Strategy,Control Activities,Information & Communication and Monitoring.So I use the concept to assess the two small foreign companies whether successful or not in the same internal control and the reason of the different result.According to the concept of the "Enterprise Risk Management - Integrated Framework", as the eight elements are kept and operated in an enterprise and can get the targets,the company can be judged as successful in the internal control.Conclusion is:even the two foreign companies use the same internal control system but they have different result because of the different internal control environment.The first of the eight elements is control environment.It is the foundation of the whole internal control system.Internal control system fixes the business activities of the enterprise and provides a reasonable guarantee for the operation.But there are still some limitations for the guarantee since the different control environment.