A Study On Internal Control Evaluation In Changsha Tobacco Company Based On Internal Audit

With the growing financial fraud, the failure of internal control has become thefocus of corporate governance, causing theorists and corporate management payingmuch attention to internal control. Internal control is a systematic and dynamicprocess, including design, execution, evaluation and improvement. Internal controlevaluation is the re-control of corporate internal control, helping enterprise perfectinternal control. Through the implement of internal control evaluation, on one hand itcan help enterprise find problems and solve them, bettering internal management andimproving competence. On the other hand, it can help enterprise perfect the corporateorganizational structure and management system, promoting the healthy developmentof enterprises.As to solve these problems, from the internal auditing point of view and theprocess of business cycle, the author analyses the current situation of tobaccocompany and its internal control problems, established the proper internal controlevaluation system based on accounting, auditing, corporate governance and financialmanagement. This paper firstly outlines the basic theories of internal controlevaluation, analyzing the concept of internal control, the differences from internalaudit and the framework of internal control evaluation system. Then it states thelocalization and the evaluation function of internal control, including the superioritiesof the evaluation by internal auditor, the relationship between internal audit andinternal control evaluation system, the way and requirements of internal controlevaluation. This paper introduces the current status of internal control evaluation inChangsha Tobacco Company and the company’s basic situation, analyzing thenecessity and possibility of internal control evaluation. Finally, based on the analysis,this paper tries building the framework of internal control evaluation index system inChangsha Tobacco Company.As the state-owned enterprise, Tobacco Company plays a significant role in thenational economical management. This paper aims to promote the operating efficiencyand effects of state-owned capital, ensuring the value increase of state-ownedcapital.