Research On Internal Control Of Public Institution

Since the21st century, China’s economic has an extraordinary growth, and now the priority has become to adapt to global economic integration by deepening the reform and adjusting the industrial structure. Under this economic situation, the state owned institutions also need to open to the market and participate into the market activity. Because of this, the competitiveness become more and more important to the state owned institutions. These institutions in our country were established long time ago and use old management system which are in lack of effective and efficient internal control lead to the risk of operation keep increasing. Some institutions have established a set of internal control system, while the management is in disorder and chaos which seriously restrict the healthy development of the institutions because of the standard is fuzzy and division of responsibilities is not clear which makes the internal control system unable to play its due role. To establish an effective internal control mechanism is the basis for the construction of the management system and an important part of the reform. In order to adapt to the reform of institutions classification and the reform of economic structure, we must establish effective management system. This is one of the most common and important on going topic for institutions now. Therefore, it is quite urgent to establish a completed internal control system, which adapt to the current political, economic, cultural and other aspects of the society.This article combined theory and practice method to investigate the risks which are existing in its economic activities, based on the research of current internal control system from institution A which is still been using in until now. According to the analysis data of the research, this article will further discuss about the redesign of the internal control system for this institution. The result shows that to promote better and faster development of institutions in the current economic environment, the basic elements are to strengthen the staff awareness of internal control, establish an evaluation mechanism on the quality of internal control and improve the supervision mechanism.