A Company’s Internal Control Improvements Research

With the rapid development of the global economy and the Intense competition among enterprises, major defects in the internal control system are important reason for the failure of many business. The improvement of the company’s internal control has become the inevitable choice of the listed companies to avoid risks. Many international well-known enterprises, such as Motorola, American southwest airline have made clear internal control objectives, and combined the internal control with their company’s target, which ensure that each production processes are in effective control and company the company can survival and develop in the fierce competition.After a long development, internal control theory has matured. The most widely accepted internal control theory is proposed by the the COSO Commission. Promulgated and implemented in2002and2004, the"Sarbanes-Oxley Act" and "Enterprise Risk-A General Framework Management" clearly put forward the meaning and implementation requirements of the internal control. This is urther development of the internal control theory, adapting to the changing economic environment.The release of first set of "Basic Standard for Enterprise Internal Control" and "Internal Control Guidelines" provided a strong legal basis and code of conduct for the construction of the the internal control in the listed companies in China. Listed companies should conduct self-assessment on the effectiveness of internal control disclose annual self-evaluation report, and hire intermediaries to audit the effectiveness of internal control. This indicates that listed companies in China have transformed from mandatory disclosure to voluntary disclosure, and achieved international standards.In October2009, China GEM officially opened, which was prepared for ten years. The opening of the GEM provided financing channels for the SMEs which can not be listed on the motherboard or small plates. A company was listed on the GEM in China shares. The GEM listed companies have "two high six new features", which makes A company face a variety of risks.In this paper, the normative research methods and case studies are adopted, and the text is divided into five chapters:Chapter1. Introduction. It describes the background and significance of the research and make theoretical overview.Chapter2. Related theory. The article discusses the meaning and the course of development of internal control, and analysis of the theoretical basis of the internal control and their own limitations.Chapter3. Analysis of A company’s internal control. Based on the COSO internal control framework, the article analyzes the status of A company’s internal control and points out the problems.Chapter4. The improvements of A company’s internal control system. This paper presents a preliminary improvements for A company’s internal control defects and problems,Chapter5. Safeguards for the the improvements of A company’s internal control system. To implement a series of internal control improvement program, The company needs some supporting safeguards. This paper presents four points.