Research On Internal Control Of B Company

BACKGROUNDInternal control is of long standing, it can be traced back to internal thoughts in the ancient Rome period. In the nineteen thirties, internal control has a certain degree of development in the United States, and has formed the theory of internal accounting control and internal management control. Then, the internal control has developed and improved in the socialized production and the continuous economic prosperity, and has gradually formed its own theory system and frame structure. In recent years, a large number of listed domestic and foreign company internal capital shady scandal have been exposure and the resulting have gone bankrupt in succession, internal control has become a focus in the field of theory and practice, the importance of internal control has aroused extensive attention. Through the case analysis, it is not difficult to find that, corporate fraud scandal, ultimately leading to bankruptcy, are inseparable from its own internal control deficiencies and failure.Compared with western countries, China has a late start but the rapid development in the internal control. Our country has already issued the "basic standard for enterprise internal control"(hereinafter referred to as the "basic standard") in2008June. In2010April our country has issued "enterprise internal control guidelines for application","enterprise internal control in evaluation","enterprise internal control audit guidelines"(hereinafter referred to as the three major supporting guidelines). They formed the characteristics of China internal control theory system together with the basic standard. Since January1,2011, they first implement in the domestic and foreign listed companies. At the same time, They have extended to the listed company on the main board in the Shanghai stock exchange and Shenzhen Stock Exchange since January1,2012; at the same time, encourage non-listed big medium sized enterprises to carry out ahead of time. Under the policy guidance and normative guidance, at present, the research on enterprise internal control in our country has priorities in the listed and large companies. It is not to establish and implement in the small and medium enterprises. And the internal control has not made substantial breakthroughs. This paper selects a private medium-sized enterprise as internal control study. It has certain practical significance.PURPOSEAccording to the basic theory of internal control, internal control of our country" basic standard" and its supporting guidelines, we can establish the enterprise internal control evaluation framework. Based on the method of in-depth interviews and questionnaires. This paper have helped the enterprise to find the internal control of weak links and defects, and put forward the internal control to construction and designed ideas, to promote the company internal control operation effectively, realize the healthy development of the company.Main content and perspectivesThe main content of this paper includes the following sections:The first chapter is the introduction part, mainly expounds four problems:the first part is the research background and significance, the second is a way of thinking of this text research, the third describe the methods in this paper, the fourth is the major innovation and defects. The main purpose of this chapter is to introduce the background and the overall framework of the thesis, to pave the way below.The second chapter is the theory part of internal control. This chapter first reviews the development of internal control and analysis the different historical periods in the development stage and the characteristics of internal control theory. From two perspective of the domestic and foreign country, analysis the research of internal control theory and practice. Then this chapter analysis three basic theories of internal control, the control theory, the information asymmetry theory and the principal-agent theory. In the third section, the paper divided into four levels to establish internal control theory, and describe the relation between them. This chapter is the theoretical basis of this paper.The third chapter and the fourth chapter is the main part of this paper, namely the part of case analysis. In this first section of this chapter, we describe the case, including the main business profitability, assets, personnel and organization structure case. Then, in the second section, by using depth interviews and questionnaire methods on internal control status of investigation, find out the company’s internal control weakness, for further evaluation and improvement measures were put forward to lay the foundation. Section third of the company’s internal control status in accordance with the control environment, risk assessment, control activities, information and communication and supervision of these five aspects one one made concrete analysis. Finally, in section fourth of this chapter, we make a final statement.In the fourth chapter, the third chapter on the basis of the analysis, in view of the company in the establishment and implementation of internal control weaknesses in the internal control system, reconstruction and design. In the first section, combined with the company’s development and daily management of the actual situation, for the company to establish the internal control of reconstruction and design goal to reach. In the second section, we analysis the reconfiguration of the internal control. The third section is based on in-depth interviews and questionnaire results, according to perfect the control environment, risk assessment, to establish a good sound system control activities, information and strengthen the supervision and control system for mechanism five aspects to the internal control of the company to reconstruct and design. Finally, in section fourth, the content of this chapter summary statement.The fifth chapter mainly feedback the company in the internal control of reconstruction and design, the company’s management efficiency and management efficiency change and reflect the situation, so the internal control evaluation of reconstruction and design.CONTRIBUTIONSThe main contributions of this paper are shown in the following several aspects:1. In this case selection, selection is a listed before the internal control construction and implementation ready to medium-sized manufacturing enterprises. Different from theory and practice circles, generally focused on the large group company, the medium-sized enterprises internal control case analysis has certain practical significance. On the other hand, in the capital market for internal control and implementation of the construction work, the research of this paper can provide the company internal control present situation further provide suggestions.2. This paper adopts the in-depth interview and questionnaire survey the method of combination of internal control situation analysis. In depth interview was targeted against the company, senior management, their company business operation and internal control status has a profound understanding; questionnaire survey setting and issued mainly for the company staff of the various departments. Therefore, the two survey methods, from different angles, relatively comprehensive ground to the internal control situation investigation.3. The company internal control indicators, although mainly from the" basic standard for enterprise internal control" and" internal control" of index elements, but, according to the actual situation, the questionnaire the setting of index has certain targeted. For example, in the control environment, this article is not to set up a unified microscopically index, but to focus on the organization structure of decentralized management, development strategy of environmental adaptability, human resources salary in the evaluation system, enterprise culture of honesty and morality, social responsibility of security, and the use of declarative discourse on index set. Therefore, the indexes set and not blindly copy the past experience, but in depth interviews, in-depth study of the internal control of the company on the basis of the status quo summed up.