Research On The Reconstruction Of Internal Control System In State-owned Enterprise(CJXH)

Establishing a sound internal control system is an important means for an enterprise to prevent risks, improve management and efficiency, which has become an important symbol to measure the level of modern enterprise management. Frequent fraud cases of listed companies at home and abroad make internal control get wide attention. Lack of internal controls or weak enforcement of internal control often becomes the breeding ground for financial fraud. The full implementation of internal control standards gradually become requirements for listed companies at home and abroad.The CSRC required the central and local state-owned holding listed companies, not only to fully implement the internal control system of norms in2012, but also to disclose Board of Directors’internal control self-evaluation report when disclosing the2012Annual Report and to disclose the internal control audit report by certified public accountants, so CJXH launched internal control system in September2012. At home and abroad, though the internal control theories have increasingly improved, there are still many of the general problems for state-owned enterprises after so many years of reform and development. The enterprises need to design the internal control system based on the theoretical framework and in combination of their business activities.This paper describes the CJXH companies’internal control problems and discusses the causes, in combination with the status of the internal control of state-owned enterprises in China and the problems faced by internal control theory, starting from the current situation of the state-owned enterprises’internal control and the characteristics of the real estate development industry.And then, this paper, combined with the actual situation of the company, sorts out all the processes involved by the day-to-day activities of company, as the carrier of the process design on the company’s main business processes reengineering, risk assessment, and standardizes inspection evaluation method. Finally, this paper elaborates the enlightenment and recommendations of the internal control system of state-owned enterprises.Through case study approach, combined with the internal control theory, empirical investigation of the case through interviews, questionnaires and other methods, This paper puts forward the company’s main problems, gives the recommendations, and builds internal control system based on the enterprise business standardization process. This paper presents recommendations on management and internal control design. I hope this will help improve the poor condition control of CJXH company, and hope it will be a reference for other state-owned enterprises in China...