A Research For Internal Control Of Railway-construction Enterprise

Modern enterprises, in order to strengthen management, improve economic efficiency, protect the accuracy and reliability of financial information, protect security integrity of the assets to achieve corporate strategic objectives, are inseparable from the development and use of complete and effective internal control system. It is necessary to strengthen internal control, which ensures a sustainable and stable development of the enterprise and makes sound impact to the success of the business. Thus, the internal control in the management of modern enterprise has taken an increasingly prominent role.During2008, the global financial crisis from the U.S has seriously blocked the development of the world economics. Under the background of the worldwide recession, Chinese government announced an investment plan with four trillion RMB to stimulate domestic demand, which includes railway as a quite large proportion and other major infrastructure, aiming to ease the impact on its economy. The advantage of railway concentrates in the field of area usage, energy saving and environmental protection. There’s also an actual need to speed up its construction to build a green, sustainable and modern transportation system. So the railway-construction enterprises have never been in such great opportunities and challenges as the main force of railway construction. Currently, great setbacks are brought to these enterprises by the rough management, the lower operational efficiencies, ubiquitous waste, and what’ s more, the increasingly fierce competition.In this paper, on the basis of the mature theory about internal control, it analyzes the current status of internal control and common problems in railway-construction enterprises. Set enterprise A as an example of railway construction, it analyzes key points of A’s main business and points out its main risks. Then the contents are focused on major methods for the internal control. After an overall assessment about these methods, in the end part, it concludes what a complete internal control should be, with more suggestions and policies.This paper includes five parts. The first part is the thesis research background, meaning, idea, framework and method; the second part states the internal control theories and applications of research review; the third part is the internal control present situation and common problem of railway-construction enterprise; the fourth part is a case study about the internal control of A railway-construction enterprise; the fifth part reveals the research findings and give recommendations about the internal control to railway-construction enterprise:emphasis on creation of corporate control environment; enhancing risk control, improve risk awareness among staff; gradual optimization of enterprise control activities, strengthening the functional management; establishment of effective e-communication platform; intensifying of internal audit.By research and study, the main contributions of this paper are:(1) The results and methods illustrated in this paper could be a reference and guide for the railway-construction enterprises, since previous study mostly concentrates in the field of finance and trade, but seldom discusses the internal control.(2) It analyzes the internal control policies for the railway-construction enterprises with five elements based on the COSO report, which avoids simple analysis about the problem from the business phase.(3) The contents set the enterprise A as an example to illustrate the operational status about the railway-construction corporations. At the same time, it provides a complete series of suggestions about what internal control of these companies should be.However, several deficiencies still exist in the paper:(1) Due to objective limitations, the research are only found on the enterprise A. Multi-objects would be better to illustrate the whole problem.(2) The paper are mainly focused on the analysis and study on internal control of risks and management for enterprise A’s core businesses. However, it seldom illustrates about how to build a set of effective systematic indexes for a railway-construction company, which is a good subject to be further studied afterwards. (3) There must be some defects in this paper. The main reason is that the author is less experienced in the knowledge about railway construction. Plus, there are only a few previous references to be studied. Please don’t save your any expertise and precious advice.