Internal Control Of State-owned Enterprises Bankruptcy Liquidation Risk Early Warning Mechanism Research

The theory and practice of normal continuing operations of the enterprise’s internalcontrol and risk management theory and practice tend to be mature.However,bankruptcy and liquidation, as the special status of the enterprise, its internal systemspecification and research of inter control and risk management has not receivedattention. In fact, bankruptcy and liquidation, as a period, has the existence ofmulti-participant, all parties have different interests and motivations, the balancedrelationship between them play a direct impact on the of the procedure of bankruptcyand liquidation. The balanced relationship is bankruptcy and liquidation of internalcontrol of enterprises.In bankruptcy and liquidation process, there are a lot of the riskfactors affect the bankruptcy liquidation, which requires a comprehensive riskmanagement theories and methods of mining risk factor identification, assessment,classification, response and monitoring.In this paper, the bankruptcy and liquidation of state-owned enterprises is theresearch object, and use the internal control theory and risk management techniquesand methods to build a comprehensive and effective risk warning mechanism ofinternal control of bankruptcy and liquidation.Theoretically, there are not a lot of theresearch on internal control framework of bankruptcy and liquidation. Practically,there are many problems, these problems on internal control in the process ofbankruptcy and liquidation. These problems are not good to protect the interests ofcreditors and carry out the process of the bankruptcy and liquidation. Therefore, weshall build a comprehensive and effective he internal control framework ofbankruptcy and liquidation with the control subject, the control object and the controlelements Response to the combination of relevant cases and in accordance with thebasic theory of internal control. After a comprehensive understanding of the basictheoretical framework building and designing risk warning mechanism of the internalcontrol of bankruptcy liquidation is the most important part of this paper. Riskwarning mechanism of the internal control of bankruptcy liquidation is to identify riskevents on the internal control during the process of the bankruptcy liquidation ofenterprises (bankruptcy receivership, bankruptcy implementation, the end ofbankruptcy, bankruptcy an additional risk assessment) and then to assess themthrough certain methods and techniques, and understand the significant risks andgeneral risks, and make risk solutions of the major risks, and finally, makesuggestions of the continuous monitoring and improvement.According to the basic process of bankruptcy liquidation, bankruptcy receivership,bankruptcy implementation, the end of bankruptcy, bankruptcy an additional riskassessment, collect an additional risk of the initial information to identify key riskpoints and their adverse effects. Questionnaire to establish risk assessment model, anduse risk assessment methods to calculate the final assessed value of the risk factors, toform the of the internal control repository, with overall risk of bankruptcy andliquidation, the risk of insolvency administrator, the creditor risk, a risk of the risk ofthe top five of the risk and the insolvency estate of the bankrupt, as well as a numberof two risk, three risk the risk of bankruptcy and liquidation.Filter out a significant risk to make a detailed specification of the major risk solutions. Risk identification,risk assessment, risk classification, risk response process requires appropriateoversight mechanisms, so we shall build a risk monitoring mechanism of internalcontrol of bankruptcy and liquidation with monitor, behavior monitoring, auditmonitoring to ensure that the risk warning process regulatory legal and smoothly.Theabove risk identification, risk assessment, risk classification, risk response and riskmonitoring process is in turn coordinated to form a comprehensive and effective riskwarning mechanism of internal control of bankruptcy and liquidation.