Case Study Of Internal Control Evaluation System Construction And Application In Guangzhou Metro

With the introduction of the comprehensive risk management and internal controlconcept, as well as the demand by six ministries, like SASAC, the Ministry of Finance of thePeopleRepublic of China, National Audit Office of People of Republic of China, the internalcontrol evaluation has been implemented gradually in most of the large enterprises in China.Due to the risk-leading function and its details management of the evaluation of internalcontrol risk management, internal control evaluation meets the approbation, and also becomesthe controlling by those the top management which pursues the detail-management byincreasingly. However in nowadays, the evaluation internal control still only is an additionalsupervising method for its business conduct in most of enterprises. The evaluation internalcontrol has became a major concern, which is be with the questions the how to make theevaluation of internal control be fully integrated with business conduct, how to make itsmonitoring and leading functions in the business conduct process to be functioning adequately,in the theory and practice, and it also attracts research by the enterprises constantly.The internal control evaluation system in Guangzhou Metro Corporation had beenevolved over be more and more sophisticated by focusing on its risk-leading function andthe simulation of Dashboarding Management of the production management. The internalcontrol manual, which is the record of the evaluation of system and process by a scientificevaluation, makes the internal control evaluation become more comprehensively, and focuseson Process Nodes, Risk Points, Control Procedures, authorization and incompatible duties,etc., effectively. Internal control manual becomes succinctly for the operator and also makeinternal control evaluation be more high-performance in the business management.According to the relative-theoretical-study of internal control evaluation, therelative-information-consulted of internal control manual construction and operation inGuangzhou Metro Corporation, the interview of the relative operators, the constructionprocess and the application of the internal control manual, Internal control evaluation systemof Guangzhou Metro Corporation is analyzed in this paper with the following points: first, itscomprehensiveness, systematicness and scientificalness; secondly, outstanding characteristicof mutually improvement between internal control manual and business management; thirdly,its successful-launched reason. With this analysis and the successful experiences, make theinternal control evaluation be more high-performance and applicable for the top managementwhich is trying to established detail-management.In this paper, Guangzhou Metro Company is the one, that a state-owned enterprise starts its internal control evaluation in advance. According to its own risk nodes of businessprocesses, a internal control evaluation was constructed and applied, and run well in part of itsbusiness management. Although it’s not sophisticated, but generally, it makes a breakthroughin internal control evaluation files. In the other side, in microscopic view,a internal controlsystem is needed in internal control evaluation manual construction and application, whichshould adequately consider the operation processes. In the other side, detail-management andeffective-management should not be considered in single process management, it should bemore comprehensive. In addition, an optimized business management program also dependson the efficiency cooperation between different departments in the company.