AB Company Internal Control Plan's Improvement Research

The development of internal control theory has five stages namely: internal check, internal controls, internal control structure, internal-control integrated framework, and the overall enterprise risk management framework. As the internal mechanism of self-regulation and self-restraint of enterprise production and management activities, the functions and value of management of internal control system have draw more and more attention of the people,and it also has a vital role in the enterprise management system. Since the twenty-first century, many countries in the word have issued in successions a lot of norm and law of internal control and strengthened supervision on listed companies.Internal control on the basis of the COSO internal control framework has been implemented in many companies. Such as, the Sarbanes-Oxley Act of 2002 was passed by American Congress in order to reorder the listed company and protect the investors confidence; Code on Corporate Governance Practices and Corporate Governance Report enacted in Nov, 2004 by the Stock Exchange of HongKong Ltd., also express clearly the requirement of construction of the internal control. The Ministry of Finance of our country established internal control standards committee in 2006, in June 2008, five ministries jointly issued the "basic norms of internal control", and provided that listed companies will implement since July 1, 2009, and non-listed medium-sized enterprises are encouraged to implement. China's internal control theory and practice is undergoing rapid change, in this context the internal control empirical study is of great significance.This article summarized firstly the theory of internal control and then carried on the review to our country internal control theory, and from the current situation and internal control problems of AB Company, raised the concept of improvement of internal control system of the AB Company from the enterprise level and process level. Hope that the establishment of a sound internal control system will enhance competitiveness, improve the enterprise value, guard against operational risks, and meet the IPO of the internal control requirements in the capital markets. Case studies of this paper, adopt internal control over the basic framework of norms and learn from the mature COSO internal control framework of the relevant theories and management practices.