The Coal Enterprise Internal Control System Construction

With the continuous development of science and technology, the developmentspeed of coal enterprises is becoming more and more quickly, in the process ofdevelopment, along with the business management requirements more and moresophisticated, its internal control problems are more and more obvious, such as: theexistence of serious financial reporting fraud, resulting in the distortion of theaccounting information. A lot of coal enterprise’s understanding of internal control isdeficient, the rules and regulations is not perfect, many cases are imperfect system, asystem does not perform or have performed unsupervised, the examination is notenough. At the same time, is also a lack of external supervision mechanism, manyintermediaries cannot intervene in internal control system of the coal enterprises,establish and perfect; coal enterprises did not restrict the machine very goodguarantee, governance mechanism’s role is limited, not to achieve corporategovernance mechanism fundamentally. Financial personnel in accounting, financialaccounting process, often from outside interference, not strictly in accordance withthe accounting standards issued by the financial report disclosure requirements; at thesame time, the organizational structure of enterprises can not adapt to thedevelopment needs of the modern enterprise, unreasonable organizational structure,personnel quality is low and so on, the rapid development of enterprises seriouslyaffected by these factors.YG company in Jilin province is a large coal production enterprises, is to thegroup, diversify the direction of development, has become a "diversified companies dominated by coal, coal joint venture, electric generation", and plans to release in themain board listing, to speed up the pace of the development of the company, increasethe strength of enterprises. But YG compared with the coal mine enterpriseslarge-scale international, domestic, there is still a large gap in the level ofmanagement, production cost, safety coefficient and so on, no obvious competitiveadvantage. In the company structure, imperfection of corporate governance. Althoughthe corporate governance structure, but many coal enterprises are not carried out inaccordance with the restriction mechanism, even there is no implementation, not theeradication of traditional ideas, it is difficult to achieve real corporate governancemechanism, resulting in decision-making and management mechanism of power ofthe cross, it is difficult to form an effective checks and balances. In the aspect ofmanagement, imperfect internal control mechanism, the authorization control,organization control, budget control, risk control, procurement control and manyother important link, also can not really form the internal control mechanisms areseparated from each other, mutual restraint, mutual supervision. In the corporatesector division, too many levels of management, unclear responsibility. YG’smanagement level more, company has three branches, branch under the mine,Department, team, team, business scope including human resource management,financial management, technology management, material procurement, inventorymanagement, production management, sales management, well under the productionoperation, safety production management, etc.. As the management level, servicespan, production condition is complex, prone to internal management missing. In riskmanagement, risk control consciousness, not establish risk control mechanism. YG inaddition to the company in the aspect of safety management to establish a risk controlmechanism, financial management, procurement management, asset management,sales management and legal management did not establish risk control mechanism,the existing risks in higher. In this thesis, the theory of internal control and audit theory, combined with thecharacteristics and the actual situation of coal enterprises’ internal accounting control,and analysis of the main problems in the coal enterprises in internal control.Combined with the actual situation of the company, were studied from the Company’sorganizational structure, procurement operations, sales, asset management, financialmanagement, security management, and to identify control weaknesses and criticalcontrol point in the control process, the various parts control points, the goal ofinternal control, and improve the economic efficiency of enterprises.