Based On The Strategic Objectives Of The Internal Control System Study

In three decades of reform and opening, China's economy maintained strong growth momentum. The state-owned enterprises, as the backbone of the national economy, are undoubtedly becoming important foundation for the socialist market economy. However, in the new century, facing the rapid change of the competitive environment, state-owned enterprises highlight the operational risks. Due to lack of strategy and risk management, failures and bankruptcy of state-owned enterprises repeat again and again.Facing the grim conditions inside and outside, the managers of state-owned enterprises actively seek the way for self-rescue and business reconstruction. Many companies develop new business strategy. However, the strategy's vision is good, and then it takes to achieve a sound internal control mechanism to ensure the implementation of the strategy. How to build an effective internal control based on the strategic objectives is a problem placing in front of all the managers.The integration framework of the internal control in 1992, and the integration of risk management in 2004, which are both issued by COSO, clearly put forward four objectives:to ensure the implementation of strategies, to ensure business efficiency and effectiveness, to ensure the financial reports relative and objective, to ensure legal compliance management. However, for specific business, because the external market environment, the stage of development, and the internal management style are different, its objectives for the internal control are completely unique. Companies on the stage of strategy transition needs to build a strategic objective-based internal control framework.This paper attempts to build a framework of strategic objective-based internal control system for the companies on the strategic transition. In order to increase the article convincing, we take Yunnanbaiyao as an example, and wish to enhance the capabilities of enterprises risk management.