Internal Control Optimization Of Jingyuan Second Power Co., Ltd

The establishment of the market economy system and the continuous improvement of the degree of marketization express objective requirements to the construction of internal controls while providing a vast arena for the development of internal controls. Effective internal control system can ensure the implementation of national laws and regulations as well as a company’s internal rules and regulations, prevent, discover and correct in time the abuses errors, guarantee the safety and completeness of enterprise assets and the authenticity and reliability of accounting information. Especially for state-owned enterprises, to strengthen the internal control is an important way to promote the enterprise management reform, strengthen and consolidate the original base, improve the efficiency and guard against the risks, as well as an important measure to ensure the realization of the strategic targets of the enterprise.Jingyuan Second Power Co., Ltd. is a holding subsidiary of a state-owned holding listed company. Taking Jingyuan Second Power Co., Ltd. as a research object, this paper studies the optimization scheme of internal controls according to the internal control structures of COSO and Enterprise’s Internal Control Specifications as well as their supporting guidelines. Through an in-depth analysis of the problems existing in the company’s internal construction process as well as in the various elements of internal control, this paper finds out the defects and problems in the construction and implementation of the company’s internal control system and proposes practical perfecting and improving measures. To optimize through internal control contributes to enhancing company’s management level and competitiveness, protecting the integrity and safety of company assets and improving the validity and reliability of accounting information. Because of the great similarities of the operation and management in the thermal power industry, the optimization plan of internal control of Jingyuan Second Power Co., Ltd. also provides great reference for other domestic thermal power enterprises.