Research On Internal Control Appraisal Of China State-owned Real Estate Listed Corporation Based On Grey Relational Method

BACKGROUNDWith the rapid development of China’s economy, the real estate industry has entered a period of vigorous development, the average income level is relatively high, relatively low technical threshold, more and more well-funded enterprises to enter the real estate industry, many of whom are many state-owned enterprises, a large number of state-owned assets into the real estate industry. With the intensified competition in the industry and at this stage our country has taken, including five countries "published in February2013, including a series of control measures to stabilize the ongoing rise in house prices to solve the high prices brought about livelihood issues, countries ongoing contraction in bank credit loans increased financial pressure on real estate companies, gave the state holding the survival and stability of the real estate business development difficult. In order to ensure normal and stable development of enterprises, in order to ensure the security of state assets, it is necessary to state-controlled real estate enterprises internal control.Establish a sound internal control in the state-controlled real estate companies, scientific evaluation of the state-owned holding real estate enterprise internal control system is the essential part, it is conducive to the audit staff to accurately and efficiently obtain audit evidence to reduce audit risk, the objective and fair audit reports, but also conducive to the state-controlled real estate business management authorities to identify weaknesses in the management of the economy based on the evaluation results, internal control recommendations for improvement, and ultimately promote the development and improvement of the internal control system of state-controlled real estate companies. Evaluation of Internal Control on the state-owned holding real estate is not only the real estate enterprise’s internal control problems, but also the internal control of state-owned enterprises has a certain significance. PURPOSEOne of the purpose of this research is the analysis of the evaluation of the status quo of China’s state-owned holding listed real estate companies internal control, internal environment, risk assessment, risk response, information and communication, internal supervision and five elements as the core to explore to build a state-owned holding real estate listing the company’s internal risk control index system has a certain significance. Research purposes through a comprehensive evaluation of internal control of China’s state-owned holding listed real estate companies, the results of the evaluation of the internal control system of the state-owned holding listed real estate companies to quantify the performance, this quantitative evaluation results not only reflect the different state-owned holding listed real estate company’s internal control level of control, but also facilitate comparative analysis between the listed company’s internal control, and thus propose targeted policy recommendations.MAIN CONTENT AND VIEWSThe main contents include the following sections:Chapter1is an introduction. This chapter elaborated from four aspects:First, from the internal control overview of the research background and significance for the real estate industry as well as the importance of the state-controlled listed companies, the second is the technical route of this study, the method of this study, four The main contributions and shortcomings. The main purpose of this chapter is to pave the way for the following introductory thesis writing background and overall framework.Chapter2is a literature review. This chapter begins by combing the course of development of the internal control theory, and clearly the meaning of the internal control, and foreign internal control evaluation theory research literature review.Chapter3for the state-owned holding listed real estate companies internal control evaluation made a theoretical analysis. The first section, from control theory, principal-agent theory, the theory of externalities and system theory several aspects of the analysis of the theoretical basis of the internal control evaluation. Section Ⅱ focuses on how to build a state-owned holding listed real estate company internal control evaluation index system based on the COSO report, combined with China’s relevant laws and regulations. The third quarter last part of the analysis of gray relational analysis in the state-controlled listed real estate company’s internal control evaluation advantage and adaptability is that state-owned holding listed real estate company internal control information itself has a gray, contains a lot of gray, and gray relational analysis The method is characterized in that the sample size no requirements at the same time can be a good combination of qualitative and quantitative analysis. That fixes the state-owned holding listed real estate companies in the internal control evaluation process, the indicators are gray, the small sample size of data, subjective evaluation of gray three problems, so I chose gray relational analysis to evaluate the state-owned holding listed real estate company’s internal control. The content of this chapter and the last chapter is the theoretical basis, based on gray correlation method commercial bank’s internal control theory prepared for later.Chapter4is the main part of this article, some of the major refinement of the state-owned holding listed real estate company’s internal control evaluation framework, in accordance with the Basic Standards for Enterprise Internal Control ", the five elements of the COSO report is divided into22specific indicators, plus The five evaluation on the profitability indicators, asset management indicators, solvency indicators, indicators of flow capacity, asset quality indicators, the establishment of the end of the27indicators; The second part focuses on the filter out of the131listed real estate company18state-owned holding listed real estate companies as a sample of the paper analyzes data, as well as the source of the data; third part of the author of18state-owned holding listed real estate companies as a sample, through the gray relational analysis method to determine the number of columns, dimensionless, calculated the correlation coefficient, and calculate the correlation degree, the final arrangement of the associated sequence, make evaluations and ranked in accordance with the pros and cons of these18samples listed company’s internal control. Finally, Part IV, respectively, from the five aspects of the internal control environment, risk identification and assessment, internal control measures, communication and exchange of information and internal control supervision and evaluation,18state-owned holding listed real estate company’s internal control analysis and research. Concluded based on gray correlation method evaluation and statistics, China’s enterprises internal control gradually be standardized; internal environmental factors, the construction and improvement of the sample enterprises to varying degrees; risk assessment, enterprises are facing both internal and external aspects of risk factors, but the sample enterprise risk awareness is not strong, comprehensive risk management is poor; control measures listed in the day-to-day operations need to be implemented, including the control of its subsidiaries and related party transactions, external guarantees control, to raise funds control, control of major investment projects, information disclosure control, budget control; communication of information between analysts pointed out that, as companies not pay enough attention for the communication of information, the state-owned holding listed real estate company is not perfect communication channels, coupled with large-scale business organization, making the exchange of information and feedback will be a state-owned holding listed real estate companies have to think about the future. This part made the analysis and evaluation by the theoretical basis in chapter2and chapter3, to provide a basis for recommendations and research prospects in next chapter.Chapter5is the recommendations and Outlook section of this article. This chapter five ministries jointly issued by the Ministry of Finance, Audit, Paul Christ, the China Banking Regulatory Commission, the Commission in May2008internal control basic norms "and" Enterprise Internal Control Guidelines issued in2010based on, and combined with the previously analysis of the status of the sample internal control for the state-owned holding listed real estate company’s internal control problems and make recommendations. First, affirmed the role of the Government in the internal control construction; Secondly, the corporate culture is conducive to nurturing positive values and a strong sense of social responsibility to improve the enterprise’s internal control; Third, the importance of establishing a comprehensive risk management system importance; Finally, the construction of efficient information platform to speed up the improvement of the enterprise’s internal control.THE MAIN CONTRIBUTIONThe main contribution of this paper is mainly manifested in the following aspects:This is the first state-owned holding listed companies, with the real estate industry together, evaluate its internal control system, try the special nature of the state-owned enterprises in the real estate industry, to explore the evaluation of internal control in this environment.Second, this article in accordance with the basic norms of internal control and supporting guidelines for internal control as the main basis, through the analysis of a large number of publicly available information, build a state-owned holding listed real estate companies has certain operational internal control evaluation index system.Third, internal control in the build state-owned holding listed real estate companies on the basis of the evaluation index system of the enterprise disclosed to manually collate information and questionnaires combination, data collection, and qualitative indicators in accordance with a certain weight quantitative index data processing, analysis conclusions. Finally, according to the conclusions of the analysis of internal control development put forward policy recommendations.