Internal Control System Of The Project From The Perspective Of Risk Management Study

Construction industry plays a significant role in the economic development and social progress in China. In the recent years, great support has been given to the construction industry; and the investment in infrastructure has increased year by year, which helps to accelerate the construction of infrastructure. Under this circumstance, a series of local and national projects have been launched successively, including national key projects like "Three George Project", "South-to-North Water Diversion Project" and high-speed railway network; constructions of stadiums of Beijing Olympic Games and pavilions of Shanghai Expo; and development of numerous real estate projects in the urbanization process. The construction enterprise is the backbone in constructing these projects, and its role is irreplaceable.The construction projects usually demand large investment, consume a long period of time and consist of many phases. Thus various potential risks exist in the whole construction process, and a small misstep may lead to serious problems. The "fragile building in Shanghai", "collapse of Rainbow Bridge in Sichuan province" and other incidents which have shocked the whole country are the most typical examples. Insufficient risk management can be seen in all these projects, and it is this kind of management that causes these major accidents and dangers. The core link of construction is the construction enterprises'control on its risks. It not only includes effective recognition, estimation and proper response to the potential risks, but also appropriate strategies and solutions. Finding out the key control points and taking corresponding actions to improve the construction project's internal control and risk management is fundamental in eliminating hidden dangers and accidents. Therefore, it is imperative to strengthen the internal control and risk management of construction projects.This thesis bases on the experiences in this field and numerous scholars'research achievements and combines with the author's own experiences in the audit of infrastructure construction for over ten years. By adopting the methods of normative research and case analysis and applying the knowledge of internal control theory, management, economics, statistics and risk management, this thesis makes a systematic research on the internal control of construction projects from the perspective of construction enterprises.First, in the Introduction, the thesis sets forth the background of subject selection, theoretical basis, research methods, innovations and deficiencies. Based on the documents of Basic Criteria of Enterprise Internal Control, No.11 of the Application Guidelines for Enterprise Internal Control-Construction Projects and Comprehensive Risk Management Guidance for Central Enterprise, it mainly intends to research into the internal control on the construction project through analyzing the risks.Then, in Chapter Two, the thesis briefly discusses the domestic and foreign researches on internal control and risk management theories, basic concepts of construction project, internal control of construction project and definition and features of risks in the construction project, and the procedures of risk management, so as to lay a foundation for the later discussion.In Chapter Three, Four and Five, this thesis respectively probes into the common internal control issues in the key phases of the internal control and risk management of construction project—preparation, construction and settlement after project completion. It emphasizes on the analysis of causes and then recognizes some relevant risks. It then suggests strengthening the strategies and measures in response to the risks in these phases, finding out the key control points and taking corresponding measures so as to have an effective internal control on the construction project.At last, this thesis uses cases to analyze and discuss the risk recognition, estimation, response strategies and solutions in the key phases of construction project. It proves that the related measures of internal control can be used in the control on the key control points and achieve good effects.At present, the researches on enterprises'internal control at home and abroad mainly focus on establishing a frame for the internal control theory and evaluating the effectiveness of internal control from the angle of audit. However, there are few researches on specific issues and measures of the internal control of construction project from the perspective of construction enterprise. It is also hard to find researches which use the internal control theory to study the risk management of the construction project.Innovations in this thesis:this thesis takes the international advanced internal control concepts, Basic Criteria of Enterprise Internal Control and other Chinese regulations as guidance, and uses the risk management and internal control theories to manage the important phases of construction enterprises' construction projects. Through a comprehensive analysis of the typical issues and their causes, this thesis tries to provide feasible measures for internal control on the construction project's important phases and have an effective management on the relevant risks. Therefore, this thesis is of a certain referential significance.