Mechanism Of Enterprise Investment Cycle Internal Controls

With the prosperity of economy and the relaxation of investment and financialpolicies, investment in China is greatly increased in recent years. It is that the lack ofexecution and management control layer in the corporation investment cycle internalcontrol mechanisms leads to blinding decisions and process confusion. Theestablishment of the internal cycle and control system will track the whole process ofproposing the project, the pre-feasibility studies, investment analysis, feasibilityreport, the establishment and implement of the project and the supervision andmanagement,which will effectively guarantee the investment ‘s security andefficiency. Therefore, strengthening the investment cycle of the internal controlmechanism has great theoretical and practical significance,With the standardized and empirical research method, this paper, supported bythe basic theory of internal control, guided by "basic norms of internal control","Internal Control Guidelines" and other regulations, intends to make a deepdiscussion on internal control mechanisms of the investment cycle issues.This paper designed the internal control mechanisms of business investmentcycle, which firstly clearly ensure the objectives of the business investment and theinternal control processes: eight key points of internal control, risk control system,the investment decision-making system and information communication system andother major systems are made, so as to provide the theory reference for theenterprises’ internal control improvement. By the case studies of Sanjiu Group, thisresearch draws a conclusion that many companies lack the internal control system ofinvestment execution, which led to investment failure.Consequently, the principles of effectiveness, prudence, independence,cost-effectiveness should be included in improving the investment cycle of theinternal control mechanisms. The measures of strengthening internal controls andimproving corporate governance are: strengthening internal controls and improvingcorporate governance investment, establishing of the monitor and managementsystem of internal controls mechanism and improving investment in internal auditmanagement system, strengthening the investment risk control mechanism, and theinvestment in the execution of the internal control system. The good quality of thestaffs and the found of convenient information management channels will be developed during the establishment of corporate culture.What’s more, this canenable corporations in China to enhance their market competitiveness.