Xi’an Zhongcui Beverage Corporate Internal Control Designed Based On COSO Internal Control-Integrated Framework

As Enron, Worldcom, and a series of accounting scandals, SOX Act was signed into law by US President in2002. Section404of the Act requires management to evaluate the internal control of listed companies based on the internal control framework, including the COSO Internal Control-Integrated Framework.Subsequently, the listing rules require the board of directors of the listed company in Hong Kong to review the effectiveness of internal control established by the issuer and the subsidiary companies at least once a year, and report to the shareholders in the enterprise governance report that the review has been completed.In order to improve the integrity of the financial report, to ensure the safety and integrity of the assets of listed companies, further perfect the internal control, to meet the requirements of internal control in Hong Kong and US, this paper use COSO Internal Control-Integrated Framework and Eterprise Risk Management Framework to study the effectiveness of internal control designed and executed by Xi’an Zhongcui Beverage Corporate.Reviewed COSO Internal Control-Integrated Framework and Eterprise Risk Management Framework, the paper defines the concepts and objectives of internal control,explains internal control designing and implementation, further analyzes the major effect of the implementation of internal control framework for corporate.On the basis of the theory, this paper studies and analyzes the present situation and the existed problems of the internal control, and puts forward the main designing of internal control and relevant improvement measures.First, this paper introduces the concept, objectives and elements of internal control and risk management, points out that the internal control, risk management is a process executed by the board of directors, management and other employees, which is applied to the corporate strategies designing and all levels and departments of the corporate and used to identify the matters that may result in potential impact to the corporate. The internal control provide reasonable assurance of the realization of the goal to the corporate. This paper states the risk assessment methodes and processes that can be used; Secondly, based on the cases of Xi’an Zhongcui Beverage Corporate, this paper points out the present status, problems of internal control, and analies the reasons of the problem, and puts forward the general principles, the thinking methods of internal control designing and completes the internal control designing of the five elements.Finally, this paper comes up with related improvement measures of the corporate’s internal control defects.