Study On The Construction Of Internal Control System In Guangzhou Automobile Industry Group Co., Ltd.

ABSTRACT:Internal control system is a product in a certain stage of socio-economic development, an important component of the modern corporate governance and an important symbol measuring the modern enterprise management. As the development of market economy and the research of internal control system in our country began relatively late, whether the understanding or the practical application on internal control system, foreign enterprises in developed countries overseas do more in-depth and thorough than domestic. To be in an invincible position in the future market competition, we must strengthen and improve our construction of internal control system. Internal control has been the attention of domestic enterprises. In the past a few years, our government has been publishing a number of laws and regulations on the internal control, in order to deal with the current confusions and weaknesses on the internal management in some enterprises and reduce the business risk. How to address and improve the problems of internal control has become the urgent priority for the enterprises, especially the listed companies.This thesis first analyzes the internal control weaknesses in Guangzhou Automobile Industry Group Co., Ltd. (GAIG), and points out the necessity of constructing internal control system based on the COSO framework theory, through reviewing the development of internal control. Then, it designs and analyzes the principles and general ideas for the construction of internal control. By applying the COSO framework theory, this thesis makes some suggestions for constructing and improving the internal control system in GAIG, from the control environment, risk assessment, control activities, information and communication, monitoring. Finally, this thesis analyzes the characteristics of the internal control system based on the COSO framework and predicts its future development.Through researching and analyzing the internal control system in GAIG based on the COSO framework, this thesis explores and summarizes the practical application of internal control system in domestic enterprises. Especially, its innovations in the balance of powers, risk control and comprehensive budget management, the integration of ERP management information system, not only has positive effects for the GAIG on establishing modern enterprise system, transforming operational mechanism, regulating management and avoiding risks, but also provides worthwhile specific cases and experiences for the related enterprises to choose, construct and implement their internal control systems.