The Research On The System Of Internal-Control About Firm CD

With the further development of market economy and the advancement of theglobal economy integration, the financial risks of enterprises are more complicatedthan before. In order to prevent and reduce the influence of financial risks, and let theenterprise can operate continuously and can win in the competition, the enterprisesmust take effective measures to control the financial risks within the acceptable range.The presence of financial risks makes internal control more and more important. Asindispensable part of modern business management, it would become a key elementwhich decides the enterprise success or failure to establish and improve the situationof internal control. In recent years, we have achieved some success for China’sinternal control both on the theoretical study and on the construction of the system oflaws and regulations, but the study still needs to be improved that how companieswould practice to build an effective internal control system. In this paper, withinternal control relevant theories and CD Company as example, we will make aresearch how to build and improve the enterprise internal control.We will introduce five important parts in this article. Firstly we introduce thehistorical background and the research status of enterprise internal-control. Secondlywe introduce the definition, objectives and principles of internal control, internalcontrol elements and key internal control processes. Thirdly analyze the situation andthe existing problems of the enterprise internal control in the key processes of CD;Fourthly, based on the internal control theory, the internal control standards of Chinaand CD’s reality, we focus on the key business processes, such as investing activities,financing activities, procurement operations, property management, financialreporting, external security and the overall budget, to study how to rebuild the CD’sinternal control system. Finally we introduce the sustained building and maintenancefor internal control, the conclusion and prospects.The main research method is case analysis. By combining internal control theory, standards and reality, from reorganize processes to assess internal-controldefects, to optimize internal-control processes, we introduce the procedures ofinternal-control rebuilding. It has great guiding significance for enterprises, especiallyfor listed company to build and maintain internal control.Major innovation of this thesis is combining theory and practice, using theory toguide practice, realize the practical uses of internal-control theory, and integrate riskmanagement with internal control. As the limitations of case analysis, the depth andthe width of the research needs to be further improved.