Research On Enterprise Group’s Internal Control In The Perspective Of The Risk

The enterprise group is important in our country enterprise, which has played a vitalrole in development of the economy. The Internal Control System is the significantcomponent of the company administration. So the construction of Internal Control System isnot being ignored to keep our country business group development.Now that the SarbanesOxley Act of2002has been effected and the COSO Integrated Framework has been widelyand successfully adopted in many overseas and domestic companies,Chinese companies havelearnt to borrow successful experiences and effective practices in order to improvemanagement levels and nurture distinctive competence.This paper starts at a series of financial fraud scandals which happened at present.And itexpounds the internal control theory in home and abroad from developing course of theInternal Control System. This paper refers the enterprise risk management framework and theinternal control basic standard and related guidelines in China and then constructed theinternal control system of enterprise group, puts forward some improvement Suggestions afteranalysed the internal control condition of SkyworthGroup. The Internal Control Systemconstructed in the text include eight elements of the Risk Management framework, suchas:The Internal Environment,Objective Setting,Event Identification, RiskAssessment,RiskResponse, Control Activities,Information Communication andMonitoring,and it makes risk management as the main line, to risk management under theframework of enterprise internal control to assess the status of the internal control and add theInternal Control Estimate System to make the Internal Control System integrated. Of course,management is endless, it along with the changes of the ecnomy, the enterprise will meet allkinds of challenges in the internal control, which requirements continuousimprovement.Enterprise should establish a set of system,which is suitable for their owninternal control according to their own development. The thesis advocates the important of theRisk Management Framework,in order to provide theoretical support for Internal control andoffer guidance about the construction or improvement of the internal control system for theenterprise group.