The Applied Development Of Monitoring Component Of Internal Control

As the global financial crisis becomes more and more serious,the risks listed companies are facing in management and investment market are growing,and more and more companies fell into huge losses or bankruptcy,which makes the enterprises and regulatory department aware of that the effectiveness deficiencies of internal control system will bring immense suffering and loss,thus led to the corporate and regulatory department's rethinking of the internal control system. Monitoring is one of the five components of internal control system and helps ensure that the internal control system continues to operate effectively.The occurrence of those events shows many enterprises are not taking full advantage of the monitoring component of internal control to promote the effective operation of internal control,which greatly promotes the regulatory department of global market to pay more attention to monitoring.In this context,COSO issued Guidance on Monitoring Internal Control Systems in Jan,2009.This guidance puts forward an effective monitoring model which is risk-oriented,and emphasizes building monitoring into day-to-day controls to improve the effectiveness and efficiency of monitoring,minimize control failure and to improve the reliability of information for decision-making.This guidance promotes the applied development of monitoring component essentially.There hasn't been a specific guidance on monitoring component in our country at present,and relevant theory studies especially on monitoring internal control system is rare and lack of systematicness.Based on the carding of concept development process of monitoring component,this article introduces the core meaning of monitoring model and analyses its innovation.After compares the monitoring guidance with our country's related rules,this article suggests that the relevant departments in our country should issue Guidance on Monitoring Internal Control as soon as possible to improve standard system of internal control and provide reference and recommendations for enterprises to better monitor internal controls.At the same time,this article uses COSO's monitoring model to analyze why the monitoring in our country is inefficient and ineffective.And then points out that the enterprises may achieve effective and efficient monitoring by establishing a good foundation for monitoring,designing and executing effective monitoring procedures, assessing and reporting the results timely,evaluating the effectiveness and efficiency of monitoring regularly,all of which form a dynamic and continually evolving process.