Internal Control Analysis Of Income And Cost Of W Enterprise Based On Coso Model

In the1990s, Scandals at Enron, WorldCom have shown there is concerned with the internal controls. Capital markets in China lags behind developed countries in some degree. However, market economy in China is growing fast in recent years. Scandals like Enron, WorldCom occur in listed companies. It shows the construction and implementing steps of internal control are weak. Therefore, for enterprises of our country, especially the listed Corporation, perfecting the internal control mechanism, strengthen risk management level of enterprises, has become very urgent and necessary.Take a wide view of the practice of internal control of enterprises in China, revenue and cost cycles are the biggest impact for financial report authenticity in the internal control. Improving revenue and cost cycles of internal control system and ensure its effective implementation, is a basic guarantee of good running and sustainable development of enterprises.This article takes a large listed Corporation(W enterprise) based on the aviation logistics enterprise as an example. We will start from the business process of W enterprise, then analyze and evaluate the present situation of the revenue and cost management, to find the principal risk points of the business process and the loopholes that may exist in the current management. Based on the COSO model theory, combine with the enterprise’s own characteristics and findings, clear the internal control objectives and basic principles of the revenue and cost business cycles, confirm the main control risks and critical control points, make up for the original internal control deficiencies, perfect W enterprise the revenue and cost business process, establish the risk control matrix of revenue and cost, strive to bring the greatest benefit at a reasonable cost for W enterprise, make the annual financial report data true, complete, timely and effective, provide a powerful guarantee for the realization of the enterprise strategic goal.This paper will be divided into six parts. The first part will elaborate research background and significance, research status of the internal control theory, the research method, structural arrangements and innovation point. The second part will summarize the internal control relevant theory. The third part will introduce the background of W enterprise and the present situation of internal control. The fourth part will analyze major problems and causes of revenue and cost internal control of W enterprise. The fifth part will propose improvement program of revenue and cost internal control of W enterprise. The sixth part will give the conclusion of this paper and look into the future.