The Research About The Internal Control Evaluation Index System Of Project Based On The Framework Of COSO

Recently, China has entered into a new period of construction with the rapid development of economy and continuous growing of national power. Much of the four-trillion economic package proposed by the State Department is used for railways, airport, power station and other infrastructure, which is bound to bring new vitality to China's construction industry. However, some problems still exist in construction project, such as ill-formed investment behavior, poor economic returns, and excessive phenomenon of illegality and disciplinary offence, etc. To begin with, the basic reason of these problems is inadequate internal control system. Internal control and management tools have lagged behind correspondingly, but internal control evaluation is an important way to improve the internal control system of construction project and ensure its effective implementation. Besides, China is lacking of substantive conduction to the internal control evaluation, which both in theory and practice is not perfect. Therefore, this paper carries out intensive research and analysis based on the overall framework of COSO internal control, which is the most instructive to the construction of internal control system of enterprises and is widely accepted in the world. Then, combining the features and management requirements of construction project, the paper is to explore construction and application of the evaluation system in the internal control of construction project and construct complete index system of internal control evaluation, and hopes to provide meaningful recommendations to China's management of construction project. The main structure of this paper is as followings.Introduction in the first chapter mainly concludes the background, purpose and significance of research, methods and ideas, main content of research as well as review of the main points at home and abroad.In the second chapter, some relevant theories introduce the development of internal control theory, and explain in detail for those theories under the COSO framework. As a result, it has been the theoretical basis for the research of this paper in index system of internal control evaluation of construction project.Chapter three elaborates the concept and characteristics of construction project at first, then carries out a comparative study between internal control of construction project and internal control of enterprises, in the end identifies main problems in the internal control of construction project. Moreover, it conducts evaluative analysis as well as the connotation, methods and evolution of this project.Chapter four is the core of this paper. Firstly, it explores principles of index system of internal control evaluation in the construction project. Then, based on these principles ideas are proposed to provide a clear context for the construction of index system. At last, the map of overall framework of index system of internal control evaluation is to be designed. What's more, specific indication is proposed to the detail index in accordance with principles of five elements of COSO internal control, which includes indicators of environmental control, indicators of risk assessment, indicators of information and communication, indicators of monitor, as well as indicators of controlling activities. In these five indicators, indicators of controlling activities are primarily carried on by the features of construction project. Consequently, the index system of internal control evaluation is constructed.In chapter five, application of index system discusses evaluative methods and procedures of index system of internal control, and attaches great importance on selection. Combined with some examples, it provides direction for the practical implementation.