Accounting Firm Internal Control System And Practice

Due to the development of local market economy, as well as the self-management needs of the firms, the research process of strengthening internal controls of firms was accelerated, in both theory and practice perspectives. In this paper, we tried to propose theory basis, thoughts of construction and consummating methods for building the internal control system in firms, and then guarantee the strengthening internal controls, risk prevention and quality monitoring.During our research process, some weak links and existing problems in the management were found when we put some theory achievements into practice. Based on them, we then summarized a practical theory system about internal controls according with the characteristics of firms'daily operation, to improve the level of management in overall operation of firms.Via deep research and investigation, this paper proposed the general idea and designing procedural for the internal controls of firms, and systematically built a framework about internal management and internal control, which were described as below:1. Equity ratio of firms should not be too decentralized either excessive centralized, instead to maintain in appropriate ratio, besides, to express the professional advice reasonably.2. Firms should follow the contribution of expertise to distribute the profits, not according to the equity ratio too much.3. Firms should balance the internal management, to fully protect the legal rights of faculties and minority shareholders.4. The installation of institutions in firms must be able to meet the needs of market and specialization. Manage and arrange staff on the basis of functions and industries difference, in order to bring the faculties'professional knowledge in internal management into full play.5. The firms should construct a comprehensive internal management system, by which to standardize the operations from aspects.6. Firms should reinforce the monitoring on branches, and realize the unified management and operation on human resource, as well as financial affairs, in order to foster the core-competitiveness and to prevent the risk together.