The Study On Internal Control System Construction In Huaneng Power International Corporation

The United States passed the Sarbanes-Oxley Legislation in2002, which accelerates the demands of corporation internal control to the worldwide. The paper aims to study internal control system construction of listed Huaneng power International Corporation(Huaneng power international)according to corporation internal control theory in domestic and overseas and the development of practice, exploring large-scale enterprises internal control construction and improvements.Firstly, the paper combs some reference information related to corporation internal control, which analyses the nature and concrete norm of internal control, pointing that antonym and preventability is the essence of corporation internal control. Compared to the external control, internal control possesses low control cost and fair effect, decreasing external organization intervenes the autonomy rights of corporation.the development of internal control practice has five stages:internal restraint, internal control system, internal control structure, internal control overall framework(COSO),internal control risk management framework(COSO-ERM).internal control develops rapidly in our country, while it still exists huge gaps to the developed countries. Based on the analysis of the background, basic constitute, management characteristics and status of internal control in Huaneng International Corporation, the paper illustrates internal control system construction of Huaneng International Corporation has achieved good effect, but still exists drawbacks, it can be illustrated as internal control system is out of line with actual operation; internal control pressure implementation is insufficient; operators change affects internal control executive force and the managers’ understanding of internal control is ambiguous. finally, the paper holds that we can improve the internal control system of huaneng international corporation as following aspects combined with the internal control system in corporation at home and abroad:changing the governance structure of enterprise legal person timely and improving internal control environment; strengthening the staff training and improving professional quality; tightening budget management and ensuring effective control task; enhancing the norm system construction in national aspect to standardize the internal control.Due to Huaneng International Corporation as the large listed central enterprise in china, its internal control system construction is representative. The paper also can accelerate the internal control system construction of other large central enterprises.