Research On Internal Control System Of Shandong Xinhua Pharmaceutical Company Limited On The Basis Of "Coso Report"

Internal controls as a system to ensure that corporate goals, has been the global attention. Especially the release of Reporting Act, the internal control pushed to the position of the world’s attention. Internal control consists of a series of procedures and policies, the role of these procedures and policies to ensure the smooth realization of corporate objectives. Therefore, the construction of the internal control system has become a business imperative.This paper released in1992COSO internal control integrated framework "the2004COSO Enterprise Risk Management-Integration Framework and Xinhua Pharmaceutical Company status quo as the main theoretical basis and footing, from the internal control environment, risk assessment, control activities, information and communication, as well as internal oversight five aspects to analyze the main problems in the Xinhua Pharmaceutical Company’s internal control system is established. First, sort out internal control theory, and introduce the COSO and its report, lay a solid theoretical basis for the next internal control system analysis. Shandong Xinhua Pharmaceutical then described in detail as well as its internal control system, and next than the COSO internal control framework, one by one element of internal control system of Shandong Xinhua Pharmaceutical analysis found weak Shandong Xinhua Pharmaceutical internal control control environment risk assessment taken seriously, practice does not completely control activities, of Internal Oversight mere formality as well as information and communication work is not in place five aspects. Shandong Xinhua Pharmaceutical internal control system, the problems, the paper proposes the following recommendations:First, to improve the corporate governance structure, increase the control culture, strengthen the company’s legal construction, as well as improve the quality of employees to improve the control environment, Shandong Xinhua the pharmaceutical internal control to have a good foundation; second, fully re-designed risk assessment work. To develop a comprehensive system reasonably designed risk assessment system, with a professional, such as the normal and efficient operation of the new risk assessment system; Third, itemized combing internal control activities, make reasonable improvements for each business, to ensure that the internal control activities carried out smoothly; fourth, increase internal controls breadth and intensity to prevent internal oversight mere formality; Fifth, the establishment of an information system to ensure that information is passed in accordance with the best path to the realization of the value of the information to the maximum extent.