Internal Control System, For The Overseas Listing Of Telecommunications Enterprises

After the accounting scandals of Enron and WorldCom , The Sarbanes-Oxley Act of 2002 was passed by American Congress in order to reorder the listed company and protecting the investors'confidence. For the publication of the act, the listed company were faced the challenge never had. The special term 404 of the Act, demands that the corporation should prepare the report of the internal control. On the background, the research is very important.The article introduced development of theory of internal control, on this base, from the angle of COSO report–internal control integrated framework and their application in the telecommunication enterprise in our country. For the goal of establishing the modern enterprises and enhancing enterprise value, most of the telecom corporations in our country depended on the foreign stock market. How to adapt their internal control framework when facing the very strict law of stock market in USA? The paper takesChina Netcom Corporation as an example, designed a model of internal control framework on the level of corporation by applying the developed COSO internal control framework in order to meet the requirements of The Sarbanes-Oxley Act. Besides the application of components of internal control --control environment, risk assessment, control activities, information and communication, monitoring, the paper also proposes to establish a system of anti-fake ,and complete internal audit system and corporation governance, for satisfying the reality of enterprises especially telecom corporations in our country. I think that there is a long ran between telecom corporations in our country and multinational companies, we should follow the development of theory of internal control , complete the system of internal control to enhance the competition power and value of enterprises.