Internal Control Research Of X Manufacturing Company Based On Accountability System

With the gradual deepening of economic globalization, the risks that the companies are facing become more complex. Out-of-control of the enterprise management and every kind of fraud leads to bankruptcy, social public begin to pay more attention to internal control. Internal control is an important part of the enterprise management and an important approach of the risk management. United States is the birthplace of modern internal control and has made great achievements. Therefore, Chinese companies should take full use of the internal control by learning the results of internal control from the United States.As an internal control activity, accountability system can ensure the effective execution of the internal control. If we put the accountability system into the internal control when we design it, it must improve the efficiency of the internal control. But the existing material of the study about the two themes is separated, and the direct study about the two theses is just a little. By analyzing the effect of the accountability system to the internal control, we can make suggestions about the internal control based on the accountability system and enrich the knowledge of the internal control.We make the X manufacturing company as an example in this paper. Firstly, we summarize the existing theory of Internal Control and Accountability System. Secondly, by analyzing the operating condition and the present situation of internal control of the company, we can find out the insufficiencies of the internal control based on the accountability system. Finally, we improve the internal control based on accountability system of the company. The main contents are as follows:Firstly, it writes the research background and significance and summarizes the domestic and foreign research situation of the subject. It also states the research methods and ideas.Secondly, it summarizes the basic theory of internal control and accountability, and then, analyzes the relationship of them. It points out that the accountability, and then, analyzes the relationship of them. It points out that the accountability system is an important part of the internal control. Accountability system environment should be an important component of internal control environment. And, accountability system can also promote the internal control activities to play its full role. Accountability system should be a part of the internal supervision in order to do better risk assessment and effectively promote the information communication.Thirdly, it states the operating condition and the current situation of internal control. And then, explores the sufficiency of the internal control based on the accountability system. The analysis of the current situation of internal control is mainly about the five elements of the internal control and making the accountability system as the guiding ideology. It analyzed the existing problems of the X company from the structure of the organization, the business management, human resources policies, risk control, control activities, information and. communication and the supervision system and so on. So it can guide the perfect of the internal control based on the accountability system.Fourthly, it improves the internal control based on the accountability system from several aspects, for example, the environment of internal control, the internal control activities based on the accountability and internal supervision. This part is to perfect the internal control direct at the flaw we found in the third part to build its organizational structure. And we make the accountability subject, the accountability object and the accountability standards into the company's human resources management activities, all kinds of internal control activities, performance evaluation and internal supervision.Finally, conclusion and prospect of the internal control based on the accountability.