The Comparison And Research Of China And Germany Company’s Internal Control Audit

So as to improve financial results, effective management methods have to be taken for a company. Internal control is a very important role on company management methods. Scopes of internal control involve diversified aspects of business process flow. You can see everywhere during company daily operation. For instance, a regulation for company stamp management supply chain management、safety stock management、customer credit control and so on. Internal control audit is means of internal control assessment, which can strongly guarantee internal control process operating normally and effectively. With China economic continuously developing, corporate internal control audit has become a very import part during operation procedure management. However, China internal control level still remain primary stage, they behind a lot to developed countries’. For instance, china only promulgated Corporate Internal Control Audit Guidelines in2010, began to implement that for public listed company on January1,2012. However, western developed countries, started strictly internal control around10years ago. Especially, United States introduced the Sarbanes-Oxley Act in July2002after Enron scandal and enforced in the public listed companies all over the country, which emphasizes corporate internal control management. Top management should promise to really discover company’s information and be willing to credit the liabilities. For example, finance dept. of a company had to draft a written self-evaluation report on company’s internal control situation before summit yearly financial reports. Auditors also had to have internal control assessment report before issue audit report.Obviously, china has behind western developed countries nearly ten years on implement company internal control audit. On this circumstance, based on my rich working experience in a Germany-owned company and a China-owned company, I start to study their both internal control scope and auditor work process、auditor approach, as well as two different ways how individually impact on two companies’grow. Finally, what and how shall China-owned company learn from developed countries internal control audit. That can be shortcut for china improve internal control and audit system quickly and effectively.