The Research On The Construction Of JX Company Internal Control System

In recent thirty years, the international community has aroused widespread concern about the theory of internal control. Especially in the late1980s, as the international capital market existed more financial risks, the community’s expectations of internal control and the independent auditor were stronger day by day. At the beginning of this century, in America there were some malignant corporate fraud cases such as the Enron accounting scandal, these led to the integrity crisis of the capital market and shook the United States even the whole international community. In order to increase the population’s confidence in the United States capital market and the economic policies of the government, in2002the United States promulgated the Sarbanes-Oxley Act which made the explicit stipulations about the establishments and maintaining of the enterprises’effective internal control system.This paper is set in the engineering of JX company internal control system construction, through analyzing the questions and the insufficiencies of the original company’s internal control system, it offers a new construction scheme of JX company internal control system. Trying the risk management of American COSO framework, based on the five elements of COSO internal control framework such as the controlling environment, risk assessment, controlling activities, information and communication, supervision, using the method of combining theory with practice, sticking to the principle of combining the systematization with the importance, and integrating the features of the large and medium-sized state-owned construction enterprises, this paper builds a set of risk oriented internal control system. The main direction of JX company’s internal control system development was only limited to financial risk control, and the establishment just focused on the control elements. JX company’s internal control system ignored the setting of the control environment, risk assessment and other elements. Therefore this paper integrates the concept of risk management into the construction of internal control system of JX company, and according to the company’s industry characteristics and the actual situation, it emphasizes the two elements, the control environment and risk assessment, in the construction. Constantly improving the internal control system can further enhance the risk resistance ability of the enterprise. Make the internal control become the important assistant to the enterprise and escort to the company’s long-term stable development.