Discussion On The Internal Control System

This paper provides analysis and improving measures for the currentcorporate internal control status in China.It begins from the theory development of internal control, analyzes thecontent of internal control, and gets the actual intention of internal controltheory. According to the research status and theory development of internalcontrol, we can see the lack of internal control in China corporate currently,especially from YinGuangXia event. So, the internal control is waiting for theurgent reformation! What should be the function of internal control? What'sthe limitation of the current internal control system? After the answer of thesequestions, this article proposes to improve corporate internal control systemfrom risk management: Improving the corporate internal environment;Takingfull-scale risk evaluation;Setting up perfect control activities;Setting upbroad information sharing. The other aspects should also be consideredbesides the above.And, this article combines the internal control with the other aspectsrelated with corporate management: Internal control can work with corporatevalue chain and compose value chain internal control model;There isdifference as well as impact between internal control and corporatemanagement;As a part of internal control system, how audit can assistinternal control to improve corporate management.