Study On Internal Control System Of China Mobile Jilin Company

A series of financial fraud involved in Enron,WorldCom and other executives makes the internal control systemof listed companies become one of the core issues concerned byregulators. Internal control is a widely concerned issue athome and abroad, many countries and regions have their laws orstandard framework of internal control. Especially the"Sarbanes-Oxley Act” release marks the improvement of therequirements for capital market to corporation governance andinformation disclosure, and requires that corporationmanagement must evaluate and test the effectiveness ofinternal control system, and disclose the results in its annualreport. At present the internal control of our corporation isweak, commonly there are internal control deficiencies in thecompanies listed in the U.S.A., and so perfecting the company’sinternal control system is an imminent task.China Mobile Communication Co., Ltd. as a listed state-ownedholding company is developing and expanding quickly in recentyears, at the same time, many deep-rooted problems in aspectsof the internal management system will be gradually exposed,and the internal control is one of much more prominent problems.China Mobile Jilin Company is a wholly owned subsidiary companyof China Mobile Communication Co., Ltd., which is listed stockin New York traded securities, therefore the financial reportsmust be disclosed in accordance with the “Sarbanes-Oxley Act”requirements.This article described the basic situation of China MobileJilin Company; and analyzed deeply the present situation andmain existing problems of the internal control of China Mobile based on the research of the basic theory on internal controlcharacteristics, goal, and component elements.The countermeasures and suggestions to optimize thecompany’s internal control processes, and to perfect the itsinternal control system were proposed in combination with the“Sarbanes-Oxley Act” requirements for the internal controland the actual conditions of China Mobile Jilin Company. Theinternal control system suitable for China Mobile Jilin Companyand continuous improvement measures were designed aroundseveral main elements. The internal control system must beimproved and perfected constantly aimed at the operatingenvironment change, to ensure the internal control system toadapt to business management and its effective implementation.