A State-owned Asset Management Companies To Improve Internal Control Study Of Equity Investments

With the deepening of state enterprise reform, the government proposed a newstate-owned assets management system reform idea that "the main state-owned capitalmanagement (the SAC)-the main state-owned capital operation (state-owned assetmanagement company)-corporate entities (state-owned, controlled, shares of thecompany) three levels of state-owned capital management operating system.State-owned asset management companies is in this state-owned assets managementsystem under the new ideas generated by the special enterprises. State-owned assetmanagement company through equity investment, the state-owned capital managementto achieve increasing the value of state-owned capital.This paper focuses on how to strengthen the equity of state-owned assetmanagement company within the control of the center, from the Western developedcountries, the evolution of internal controls to startreference to of China’s scholarsstudy the situation of internal control, summarized development stage of internalcontrol, expounded the five internal control elements and basic content.This article focuses on the main state-owned capital operation of internal controlsand standardized equity investment from the state capital the background and the mainoperation in the socialist market economy of the special function start to explain theoperation of the main state capital equity investment process, analysis of the operationof the main state-owned equity investment capital critical control points, raisedconcerns about the decision-making control equity investments, operations control,accounting control, effective control and evaluation of the liquidation control.In support of the basic theory, this paper combines a state-owned assetmanagement company’s equity investment within the control of the actual situation,analysis of a state-owned asset management company’s equity investment status andinternal control problems and to address the above issues, this article from the internalcontrol five elements starting propose improvement measures and recommendations topromote a state-owned asset management.