Study Of China's Internal Control Environment

In recent years, a series of accounting scandals and corruption cases of government officials and senior administers brings the recognition of internal control and internal control environment. Because the internal control system is the important content of modern business management and internal control is a very intrinsic mechanism which the enterprises voluntarily adjustment and restrict themselves. Internal control environment is the basis of internal control. So the author thinks that the key reason which causes internal control invalidation is internal environment imperfect. Based on this view, the problem of how to enhance the internal control environment construction becomes the focus of research except the emphasis of internal control.Internal control system and internal control environment are the objects of my research. So the paper firstly summarizes the theories of internal control and internal control environment, analyzing the relations between the internal control system and the internal control environment with the viewpoints and methods of system theory, affirming the basic functions of internal control environment in the internal control system. Secondly, aiming at the problem about the absence of external environment factors in the internal control environment factors of the existing research framework, and other parts of the framework having no mentions about the external environment factors, so put forward that the internal control environment factors framework should include not only the internal environment factors, but also the external environment factors, then reconstructing the framework of internal control environment factors in the enterprises of our country. Thirdly, based on the framework and aiming at the defects of the internal control environment of enterprises in our country, put forward some corresponding suggestions. Finally, emphasizing the essentiality of the internal control environment factors with a case.