A Study On Internal Control Over The Corporate External Equity Investment Business Based On UT STARCOM's Crisis

Internal control is an old but young research subject,which began almost together with the appearance of private property,however,it is continuously being conferred new features along with the continuous development of the society and the economy. Recently,international accounting fraud cases have kept emerging,and in our country the similar incidents are also nothing new now.The fundamental cause is attributed to the inadequacy of enterprise internal control system.Since the issue of enterprise internal control has attracted extensive concern,centering on the key part of internal control-- how to strengthen the internal control over the enterprise equity investment, this paper begins from domestic and foreign internal control theories and consults and borrows the international internal control theory and experience for reference,and then concludes the origin and development of internal control and outlines the basic factors of internal control as well as sums up and analyzes the evolution and current status and failure cause of the domestic internal control theories.Subsequently,this paper focuses on explaining the internal control process for enterprise equity investment and analyzes its key links and key control points and presents the following aspects requiring attention:system control over the equity operation organization,equity investment post division control,equity investment authorization and approval control,equity investment preview control,equity investment feasibility analysis and decision-making control,equity investment disposal control,equity management and supervision and evaluation control;and it mainly expounds how to construct equity management internal control framework,including equity system,equity strategy system,equity administrative system,equity risk control system,equity assessment system,and the equity information system.Meanwhile,this paper uses UT STARCOM as an example and analyzes its problems in equity investments and clarifies that such key points require attention in the internal control process of enterprise equity management,as investment strategy management,capital bond control,equity internal control body, financial statements supervision,internal control and coordination etc.,and presents some suggestions and measures to improve enterprise equity investment internal control,and reflects to enhance equity investment business internal control by equity investment strategy,environmental construction of equity investment internal control, setup of good control activities,multi-directional reinforcement of equity monitoring, adequacy of equity risk evaluation control mechanism as well as establishment of equity management dynamic information system etc.