| In the recent years, internal control failure has caused frequent risk events of enterprise groups with the progress of merger and acquisition.2011, the State Auditing Administration released the audit report of17central enterprises, exposing the vulnerability in the aspects of financial management, investment management and other management problems, and a number of enterprises were criticized due to illegal bonus, inflated sales income, rush investment leading to project failure, etc. There is no time to delay to enhance the construction of internal control and improve the management mechanism.In this paper, a case study approach was used to study the construction of internal control system for A corporation group. The paper first analyzed the current situation and problems of its internal controls, and its practice of internal control system construction. And then, the author analyzed the successes and shortcomings of the A Group’s internal control system, and proposed recommendations to further improve internal control system. The main content of the article was as follows:First, the paper introduced the background and specific practice of internal control for A group. In accordance with the five elements of COSO, the group highlighted the focus of every element, combining the risk assessment with control measures, underlining leadership attention and propaganda, and emphasizing the role of supervision through internal control evaluation.Second, the paper analyzed the problem and deficiencies of the internal control system. The group did not build its internal control system with its characteristics, without setting up internal control operating mechanism, no clear position for internal control standards, and no effective interface with the existing management.Third, the article proposed recommendations of internal control system for A group. The author suggested that A group should clarify the duties of relevant departments, establish sound organizational structure and corporate governance structure, and build assessment mechanism to set up the internal control operating mechanism. Besides, A group should clear position for internal control standards, combine the internal control construction with risk management and internal audit work of enterprise.Through this case study, the author aimed to discuss how a corporation group builds a risk-oriented internal control system, proposed to construct the internal control operating mechanism, and combine the internal control with daily operation and management, with the final destination to improve the management for corporation groups. |
