Xishan Group Internal Control System Construction Research

Internal control has become an important measure of internalization of external governance, since the U.S. promulgated the "Sarbanes-Oxley Act",asked the managers of listed companies issued an internal control evaluation report, and let the CPA carry out attestations of internal control. In order to protect the interests of stakeholders, all of the securities regulatory authorities require public companies to establish and perfect the corporate governance structure. However, if the external requirements can’t be internalized as the value-added activities, but become a kind of burden, obviously, it is contrary to the original intention of corporate governance. Internal control and risk management can solve these problems precisely. They will internalize the external governance requirements into their own value-added activities.China’s economic has developed rapidly during three decades of reform and opening up. After thirty years of development and efforts, our country economy is in an important period of industrial upgrading and transformation. At this stage, the enterprise management ability and knowledge, gradually beyond the land, capital and become the key factor of production. The concepts and methods of internal control and risk management are much-needed by the decision-making and management of a corporate.In this paper, we took the internal control implementation of Shanxi Xishan coal and electricity group as our research background, studied how to build a sound internal control system. We introduced the theories of internal control firstly, demonstrated the theoretical basis and research content, analysed the present situation of internal control research and results Especially the basic standard for enterprise internal control,which is issued in May2008, determined the decision of establishment and implementation of internal control.The third, fourth and fifth chapters introduced the present situation of Xishan group internal control implement, analyzed the problems and the subjective factors and objective factors. In this paper, we raised construction of the internal control system, set goals,rinciples and frameworks. In order to ensure the effectiveness of Xishan Group’s internal control system, we presented the safeguard measures at last.