On The Internal Control System Perfect

China is facing more and more competition in the international market after joining the WTO. In order to enhance the competitiveness of our state-owned enterprises , we must strengthen the building of the internal control system which is the foundational work and the guarantee to the survival and development of all enterprises . For this purpose , The State Council made public and into execution on May 27, 2003 the 'Temporary Rules on the Supervision and Management of State-Owned Assets of the Enterprises" which further strengthens the control of the enterprises externally. Nevertheless, we still have a long way to go in the building of the internal control systems of our state-owned enterprises in comparison with the international standard. As a typical and large state-owned company which is undergoing the reform, China National Light Industrial Products Imp. & Exp. Corp. has been exploring the possibility of the system reform in the last few years. But owing to the nature of the state-owned companies, it experienced a lot of problems and even setbacks. The author, the general manager of the accounting and finance department of the corporation, collected a lot of materials, studied the theory of the corporate internal control, analyzed the present condition of the corporate internal control systems of both international and domestic enterprises and then did significant research work on the issue of the internal control systems of the state-owned enterprises by combining the theory and her own working experience.This article introduces the forming and development of the international theory of the corporate internal control systems and describes the present situation of the internal control systems in our country. And then analyzes the key problems affecting the internal control of Chinese enterprises . On the basis of these information and analyzes, I expressed my own points of view on how to improve the corporate internal control systems in our country.Firstly, the author brought up that it was essential to reform the structure of ownership of the state-owned business enterprises before the effective system of the internal control can be established and expressed her view on the reform of the ownership which includes the following 3 aspects: common developments of the enterprises of different ownership, problems of the illegal control by "inside" personnel and the decrease of the state-owned shares in the enterprises. And then, the author explained the importance of establishing the scientific decision making systems which include some specific measures such as the formation of the complete and strict decision systems, rules of best-choice system,principles of the implementation of the decision as well as the systems of the investigation of the wrong decisions. Secondly, the rules and regulations are the legal foundation of the effective internal control system . Therefore, the author pointed out, based on the present situation of the building of the laws and regulations in our country, some aspects which we should pay attention to such as: the system that should be regulated, target positioning, scope of the contents, ways of establishment and the judgment of the standardFurthermore, the author explained the necessity and importance of the formulation of the standard for the internal control system according to the international standard and the actual situation in our country. The author also did in-depth analysis based on the financial report and the change of the mentalityFinally, the author of this article analyzed the significance of reinforcing accountancy control and the compulsive audit in enterprises. In view of the present auditing system in China National Light Industrial Products Imp. & Exp. Corp as well as in our country, the author made six suggestions and measures: necessity of the accountancy control and the supervision system within the enterprises, appointments of the managers of accounting and finance dep...