China Tobacco Companies' Internal Control Model

With the deepening development of China's market economy, China's tobacco industry has also undergone a major organizational restructuring wave of consolidation. After several rounds of reorganization, Shandong Tobacco Industrial Corporation was established in February 2004. The company is a National Tobacco Corporation wholly owned by China National Tobacco Corporation. The company possesses four Cigarette production plants of Jinan, Qingdao, Qingzhou and Tengzhou and two wholly-owned Subsidiaries of Jiangjun, Yizhong. After the reorganization, corporate organization, management models and financial management environment has changed, which brings the company many problems about its old management model. In view of the importance of internal controls in corporate governance, internal control model must be adapted to serve the enterprise management system. Therefore, after the reorganization of the Shandong tobacco industry, it is badly needed to build internal control model for Shandong tobacco industrial company.This paper, taking the developing history of Shandong Tobacco Company as the background, based on the fiduciary-duty theory, combined with COSO risk management framework, analyzes the problem of internal control of Shandong tobacco company, and finally get a proper internal control model. At the same time, this paper gets an evaluation model for the new internal control model.At the first chapter, this paper introduces Shandong Tobacco Company's developing background, and explains domestic and foreign scholars'research status. The second chapter introduces the theory basis of the research. Chaper3 introduces the status of Shandong Tobacco Company's internal control and it's problem at the present.Chapter4 describes the design principal of the new model. At chapter5, the paper gets a framework of Shandong Tobacco Company. At the last chapter, the writer makes a summary of the full text, as well as prospects for future research.