A Diagnosis And Reconstruction Design Of Internal Control System For Yicheng Real Estate Company

At the beginning of this century, Due to the failure of internal control, some Chinese& foreign enterprises like Enron,Yin Guang Sha,suffered great failure, which aroused great concern from national government on internal control issues.2002, the U.S. "Sarbanes-Oakley Act" was born; in June 2008, known as "China's Sarbanes-Oxley Act," the "basic norms of internal control" has already been published, and been put in to practice firstly in listed companies from July 1,2009.At the same time, after ten more years of rapid development of China's real estate industry, external environments for the industry have already undergone major changes due to the continually tightened macro-control of government and other various reasons. To respond to difficult business environment and prevent operation risk, it is the best choice to get rid of marketing opportunism and achieve sustainable development that establishing and perfecting the internal control system and ensuring the effectiveness of operation for real estate business.Based on the research and analysis of internal controls and operating characteristics of real estate, this paper proposed the ideas and methods of internal control construction according to the project development management process. This paper took YiCheng as the research and construct object, and customized a set of internal control system for YiCheng considering the fact of this company. First of all, this paper analyzed the internal control status of YiCheng, advanced the existing problems and analyzed the causes of the problems; then, give a brief demonstration of the necessities to reconstruct the internal controls of YiCheng company, and the objectives and principles of the internal control reconstruction; at the same time, combined with YiCheng's actuality, proposed the design ideas and implementation steps of internal control reconstruction program based on project development business. At last, according to the program rebuilding ideas and steps, comprehensively used the theories and methods of reengineering, objective management, risk analysis, internal control and so on, this paper detailed YiCheng's reconstruction internal control processes and methods, from the internal control environment, professional management of project development stages, internal supervision.Based on the research of relevant theories, this article advanced the internal control constructive idea on the basis of business process management, so it has some innovativeness. This paper took the empirical research method to analysis the existing problems of the specific company and the cause, and applied the constructive idea to the specific company according to the actuality of it. So, it provides some reference to construct and implement internal control in real estate enterprises or other enterprises of China.