Internal Control Evaluation System Of State-owned Enterprises

Although new regulatory regime of state-owned capital was issued several years ago and put into practice, many operation failures and financial scandals still happened in these state-owned enterprises. In my point of view, it is the absence of absence of micro-regulatory system, internal control system, that we should blame to. Hence, this paper focuses on internal control evaluation system which is designed to safeguard that the internal control system is in effect continually during a period, usually a fiscal year. Hope that this research can make contribution to the establishment and effective execution of internal control system of state-owned enterprises.In The paper, the writer uses many kinds of research methods, such as, multi-disciplinary theory combining Management Science, Finance and audit, comparative analysis, expert survey and flow charts. Research aims to solve the following problems: (1) Reviews the development of domestic and international evaluation of internal control theory and makes comparative analysis, and then predicts that companies will develop evaluation system spontaneously. (2) Make clear the current internal control condition of state-owned enterprises. They have several deficiencies related to the reliability of financial report; corporate governance and implementation effectiveness of the internal control. On this basis, she designs an evaluation system combining external supervision, internal supervision and self-monitoring. And each force will make integrated use of three internal control evaluation model, including the internal control audit, internal audit and internal control self-assessment. Control self-assessment is the core of evaluation system. (3) Discuss the factors o internal control evaluation system, including the evaluation criteria, evaluation principles, contents and evaluation methods in detail in Chapter IV. (4) By expert survey, obtain the regulations of financial internal control evaluation of National Grid Corporation. The Chapter V carried out the implementation of financial internal control self-assessment in North Grid China Company under the above regulation and the system designed in ChapterⅢ.The innovative points in this paper include the following three aspects: (1) Create an internal control evaluation system. (2) The combination use of theoretical and practical analysis. Obtained first-hand material and abstracted evaluation process from the practice. (3) Visualized the internal control activities by relating them to the subject of their liability.