Research On Internal Control Case Of X Company

The internal control is a generic term of methods, procedures and measures which areused in the enterprises in order to achieve its business objectives, protect the security andintegrity of assets, and ensure that the accounting information is correct and reliable,ensure the operation policy being carried out, ensure the business activities of the economy,efficiency and effectiveness in internal take self adjustment, constraint, planning,evaluation and control. A few years ago, the events "Enron","Italy Parmalat financialfraud incidents ","Oriental electronic event","China Aviation Oil incident" happened inabroad highlighted the enterprise internal control weakness. Under the background ofexisting market economics, small and medium-sized private enterprises are developed as astrong force. But in the actual operation and management process, due to variousconstraints of its management and the external environment, the internal control problemsare particularly prominent, if not to strengthen internal control and taken measures, internalcontrol will seriously restrict the healthy and sustainable development of the small andmedium-sized private enterprises.Based on the COSO theory, the relevant domestic laws and regulations related tointernal control, the current situation of internal control of X company, the problems andcauses of internal control problems are analyzed in this paper. And, from the points of howto optimize control environment, sound risk assessment mechanism, standard controlactivities, improve the information and communication channels, a sound monitoringsystem, the corresponding countermeasures and suggestions are put forward.