China's Small And Medium-sized Accounting Firm Internal Control Issues

In October 2009, the General Office of the State Council transmitted "Several Opinions on Accelerating the Industry of Chinese Certified Public Accounts" formulated by the Ministry of Finance, which puts forward the general idea of the layout for accelerating the reasonable development of the industry of certified public accounts and the coordinated development of all large, medium, and small accounting firms. This will undoubtedly bring opportunities to the development of accounting firms. In May 2008, the Ministry of Finance and other five ministries jointly issued the Basic Norms of Enterprise Internal Control, which provided the main basis for the establishment of enterprise internal control. In view of these, I believe it will be of strong practical significance to study the internal control problems of Chinese medium and small accounting firms.This paper take Chinese medium and small accounting firms as its research objects, combine normative analysis and case study, and use relevant theories of internal control to analyze the existing internal control problems of Chinese medium and small accounting firms. This paper also put forward some suggestions such as creating good internal control environment, conducting comprehensive risk assessment, establishing sound internal control system, intensifying the implementation of internal control regulations, and strengthening the monitoring and evaluation of internal control. All in all, this paper is intended to discuss some comprehensive thinking which will be universally useful for the implementation of the norms of internal control.However, due to my limited knowledge, my understanding about enterprise internal control may be superficial, and I will try my best to further my study in this field in the future.