A Study On The Internal Control In Bankruptcy Liquidation

Internal control is the inevitable outcome to a certain level of economic development, it is in the increasingly fierce competition in the external, internal management of the urgent need to strengthen the background of a theory, its fundamental purpose is to guarantee the efficiency and effectiveness of the operation of the company, to protect the security of the enterprise’s property and improve the management level of enterprises. At present, China’s domestic internal control theory from COSO’s "internal control framework", in order to continue to operate the enterprise as the research object, throughout the entire business process. China’s "internal control basic norms"(2008) is not clear that the internal control procedures for bankruptcy liquidation of the enterprise, that is divorced from the continuing operation assumption under internal control procedures are applicable, but provisions of the bankruptcy law of China(2006) bankruptcy liquidation of enterprises during the period of liquidation shall carry out the procedures and methods, practice is in line with the principles of internal control.In the period of bankruptcy liquidation, the essence is still the bankruptcy liquidation procedures, so that the bankruptcy administrator system can not be effectively carried out, thus resulting in the internal control of bankruptcy liquidation. So it is needed to construct the internal control procedures of the bankruptcy liquidation enterprise to ensure the smooth implementation of the bankruptcy liquidation procedure. The for bankruptcy liquidation proceedings, lack of internal control problems, introducing "bankruptcy liquidation procedure of internal control concept, to explore what is the liquidation of the internal control, why internal control theory is also applicable to the enterprise bankruptcy liquidation period, and the use of case study method, combined with the bankruptcy liquidation procedures stipulated in the bankruptcy law, in the node’s key, set the internal control activities, construction of liquidation of the internal control framework, ensure legal compliance procedures of bankruptcy, to protect the interests of creditors, safeguard enterprise bankruptcy assets to improve, protect state property to ensure the efficiency of bankruptcy liquidation, in order to maintain a normal market order.