Research On The Cost Internal Control Of Motor Industry

As early as1992, the U.S. COSO Committee issued a report which was the "Internal Control-Integrated Framework", namely, the COSO report. This report proposed the concept of the framework of internal control. In2004, the COSO Committee modified the COSO report which was issued several years ago according to the Sarbanes-Oxley Act, and released a new report called "Enterprise Risk Management-Integrated Framework". The report stressed that the internal control is necessary to actively strengthen risk management. Develop the Awareness of risk management is a major development and breakthroughs in the internal control theory.The development of the internal control in foreign countries experienced several stages which were the internal check, the internal control system, the internal control structure, the overall framework of internal control and the enterprise risk management-the overall framework. The purpose of the internal control gone through the stages contain that in order to protect the business and property, to ensure the financial and accounting data are accurate and reliable in the internal accounting and management control period, and then the ultimate purpose of improve business activities, ensure the financial report reliability and compliance of relevant laws and regulations. In terms of the control elements, which experience the two-factor theory during the internal control system to the three elements of theory during the internal control structure, then to the five elements theory during the overall framework of the internal control, and the last is the new eight-factor theory.But for a long time in our country there does not have a complete internal control practices which were in line with china’s national conditions to guide the enterprises’construction of internal control. Until2008, China released the "internal control norms for enterprises" and then in2010published the "internal control guidelines" on the basis of fully absorbing the international advanced theoretical and practical experience of internal control. The release of this set of specification marks that china’s internal control system of norms was basically completed. This set of norms adapt to the actual situation of China’s enterprises and integrate the international advanced experience.This specification states that first of all listed companies which were list inside, at the same time outside implement the norms since January1,201Land then in January1,2012expanded to the main board-listed company on the Shanghai stock exchange and Shenzhen stock exchange market. Based on these, choose the small board and GEM listed companies to operate. At the same time, encourage unlisted large and medium-sized enterprises to implement in advance. All these indicate that china’s increasing emphasis on internal control.The internal control of cost and expenses is an important part of the internal control which is highly concerned by the managers, investors and also the employees. And lots of great fraud cases in China’s capital market associate with the false presentation of cost and expenses. Therefore, the companies must pay attention to the internal control of cost and expenses and through the construction of the internal control to reduce operating costs, improve operational efficiency, and promote the establishment of modern enterprise system. To strengthen the management of cost and expenses is an important guarantee of the financial results, the important means to increase the profits, and the key to maximize enterprises’ value. Medium-sized electrical branch company actively practice the national provisions about the internal control, and take this as a major issue during the company’s "Twelfth Five Planning ". However, medium-sized electrical branch company now faces intense competition and severe tests, so it urgent needs to explore a set of internal control system to control cost and expenses, to improve efficiency and to respond effectively to the internal and external risks enterprise now faced.This paper has five chapters to study medium-sized electrical branch company’s internal control of cost and expenses. The first chapter is an introduction. Describe the background of the study, as well as this examination’s theoretical and practical significance.Chapter II, the theory of the cost and expenses. Review and Summary the relevant provisions as well as theoretical literature of the internal control and the internal control of cost and expenses at home and abroad.The third chapter, the basic situation of the medium-sized electrical branch company. This chapter describes the nature of the medium-sized electrical branch of the company, staff composition, organizational structure, and difficulties encountered in cost control in order to facilitate readers’understanding of the company and the related system.Chapter four, the current situation and the problem analysis of the internal control of cost and expenses in medium-sized electrical branch company, this chapter take the "internal control norms" which were newly enacted in china as a guide, describe the current situation of medium-sized electrical branch company’s internal control of cost and expenses from five aspects, and then analysis the problems.Chapter five, conclusion and improvement measures. The description and analysis of the problem about the medium-sized electrical branch company in order to find and put forward some measures to improve the current situation. The article suggests that the Medium-sized electrical branch company should take the lead in changing concepts firstly, establish a sense of risk and crisis and create a good corporate culture, then strengthen the training of personnel to facilitate the promotion of the concept of cost and expenses and the use of information technology. The third one is to establish rational and effective control activities. Finally, to increase the enforcement of the control system and establish audit institutions to strengthen supervision.