Research On Internal Control Of X State-owned Grain Enterprise

Starting from 2004, the state launched a comprehensive market-oriented reform of grain circulation system to allow and encourage multi-market entities involved in food operations, will be fully state-owned grain enterprises into the market, it truly autonomous, self-financing, self-restraint and self-development market competitors and independent legal entity. On June 28,2008, the Ministry of Finance, Securities Regulatory Committee, the Audit Commission, the Banking Regulatory Commission, the Insurance Regulatory Commission jointly issued "the basic norms of internal control"; on April 26,2010, the five departments issued "Supporting guidance". The promulgation and implementation of "Basic Standards" and "Supporting guidance" means that China has established system of internal control standards to protect the interests of investors. But what the state-owned grain enterprises need to be resolved is how under the "Basic standards" and "Supporting guidance" requirement, combined with its own characteristics the state-owned grain enterprises establish a sound internal control system.As an important carrier of the State regulation of grain markets X state-owned grain enterprises, there has been a range of issues since its inception due to the impact of the previous system, such as institutional weaknesses of a witch hunt, unclearness of responsibilities, the unconsciousness of internal control management, and the low quality of general staff. All of that have a great negative impact on the intention of ensuring the grain market that government macro-control. Based on this, the paper aims to find their internal control problems by the X-specific internal control of state-owned grain enterprises case studies, and provide the internal control theory and case for the research material through the analysis and improvement of its internal control. It also explores a set of methods and ideas which suits the characteristics of the internal control system of its own and provides a reference for X state-owned grain enterprises. This article summarized the internal control of domestic and foreign research results, making a study in the following aspects on the basis of this article:Firstly, this paper makes a integrated analysis of the basic problems, research programs from the normative research, including topics of background, research significance, research contents and methods and literature review part of the internal control. On this basis, the paper makes a classification and carries out analysis of the meaning of grain enterprise, state-owned grain enterprises and state-owned grain enterprises features characteristic of internal control.Secondly, starting from the case study method, I give some introductions about the industry and business in which the X state-owned grain enterprise. Then I emphasize on the status and the existing problems of its internal control, including the inadequate internal environment, not perfect risk assessment, non-standard control activities, the weak information and communication management, inadequate supervision and other internal problems.Moreover, after analyzing the internal control problems of the state-owned grain enterprises, I give some recommendations according to the existing problems to make some improvements, including improving its internal environment, improving its risk management mechanism, regulating its control activities, strengthening the information and communication management, and improving the internal supervision.etc.Finally, on the basis of the analysis of the X-state-owned grain enterprises, I put forward the main conclusions and limitations in this paper. The conclusions includes the enterprise should establish a sound internal control system combined with the concrete practice of business. Large-scale enterprise should be concerned on risk control of its subsidiary companies, and the effectiveness of the implementation of internal control should be improved. Limitations mainly include the limitations in analysis of case data and the limitations of the problem.