The Case Analysis Of Internal Control On Fixed Assets Of NE University

Fixed assets is the basis for teaching and research activities in universities. With the implementation of the higher education system reform, the scale of fixed assets in the university have expended and the proportion of fixed assets in the total assets have increased year by year. But now the internal control of some fixed assets of the university is weak, and associated system construction lags. Improving the internal control of fixed assets to ensure complete safety, is of profound significance to prevent the loss of state-owned assets.In this paper, we target the fixed assets belonging to the NE University as our study objections, examining the status of its internal controls with "COSO Internal Control Framework","Basic Standard for Enterprise Internal Control","Guidelines for Enterprise Internal Control" and "Administrative units of internal control." after which we get the conclusion that the NE University has some internal control problems in five aspects, including incomplete internal control environment, inadequate risk assessment mechanisms,lack of effective control activities, blocked channels of information and communication, no comprehensive auditing and supervision. Finally, to solve these problems, we now put forward measures to improve the internal control environment, strengthen risk management, regulate the internal control activities, implement the fixed assets information management and improve the auditing supervision mechanism. Considering the operation and practice of higher school, we develop convenient operation control flow graph after analyzing and doing some research on the internal control of higher education institutions. The main contents of this paper include the following five parts:The first chapter is Introduction. This chapter briefly describes the background, significance, literature reviews, research methods, frameworks, and articles on innovation and weaknesses.The second chapter gives a brief analysis on the particularity of fixed assets in universities. Firstly, describe the concept of fixed assets of University. Secondly, compared the fixed assets in colleges and universities with those in enterprises.Then analyze the particularity of the fixed assets in the internal control system. On this basis, further elaborate fixed assets university internal control elements, goals and processes. This part paves the way for the following chapters. The third chapter describes the status of NE University’s internal control of fixed assets. Based on the introduction of the structure scale, basic situation and organization of fixed assets in NE University, the paper focuses on the introduction of NE university’s fixed assets, the growth trend of fixed assets and all kinds of fixed assets to the total fixed assets ratio, find the key points of internal control. Secondly, introduce and analyse the internal control of fixed assets control mode, control system and control process.The fourth chapter combines the NE university fixed assets internal control status with the five elements of internal control and puts forward by the COSO Committee. From the lack of ideal internal control environment, risk evaluation mechanism is not perfect, the lack of effective control activities, information and communication channels is not clear, the lack of the five aspects of reasonable internal supervision system defects of NE university fixed assets internal control. For the lack of ideal internal control environment, risk evaluation mechanism is not perfect, the lack of effective control activities, information and communication channels is not clear, the lack of internal supervision system, NE university internal control of fixed assets defects is exist. In the analysis of control activities, the paper analysis the flaw of internal control according to the process of the internal control of fixed assets.The fifth chapter describes the NE University countermeasures to perfect the internal control of fixed assets. And countermeasures in this part is correspond with the fourth chapter. It points corresponding countermeasures and methods for each defect. It proposes that controlling fixed assets shall be normalized from such aspects as budget, approval, management, disposal and vitalization of fixed assets.The paper formulates operation flow charts for the internal control of fixed assets.This study is significant for NE University to perfect the internal control system, regulate the fixed asset management and improve teaching quality and other aspects of the University of NE. At the same time, I hope this study can provide references for establishing the internal control system of fixed assets in other similar universities.