Case Study Of X Military Enterprise Internal Control

As the country’s reform and opening in1980s, the military enterprises began to shiftfrom planned economic system to the market economy system, in order to meet thedevelopment needs of the market economy, managers of military enterprise has taken acertain control measures in their daily management activities, but still has not paid enoughattention to the internal control. Since the beginning of the21st century, China has launcheda large-scale shareholding reform, with the separation of ownership and management rightsof the enterprise and further establishment of the principal position of the enterprise, themanagement layer of military enterprises begin to realize the importance of internal control,and willing to establish a perfect internal control system to achieve the enterprise transitionto a modern management mode.Due to the special nature of military enterprises, China has not made clear provisionsfor the internal control of military enterprises, and neither does the theorists have asystematically and in-depth research on it, which result in a short literature and theoreticalresults and a non-complete framework system; besides, there is also very few successfulexperience for reference in practical. Most of the military enterprises take the internalcontrol standards of general industrial enterprises as guidelines, therefore result in internalcontrol failure. Thus, to establish an internal control system with the characteristic ofmilitary industry according to the special nature and practical development needs of themilitary enterprise has an important theoretical and practical significance on enhancing riskprevention ability and promoting promote the healthy development of China’s militaryenterprises.Taken COSO internal control framework theory as the first reference, referring to thespecific provisions of China’s " Basic Norms of Internal Control " and three supportingguidance etc., and on the basis of referring to a number of related literature, from the fiveelements of the internal control system: the internal control environment, risk assessment,control activities, information and communication, internal supervision, adopting themethod of literature research, survey research, case analysis etc., this essay deeply analyzedthe current situation of internal control X military enterprises and concluded the problems like unsatisfactory existing internal control environment, lack of risk awareness, andproposed specific application strategies to optimize the internal control environment,strengthen risk awareness, and establish a risk assessment mechanism to optimize theinternal control of X enterprise, aiming at improving the enterprise management level andrisk prevention ability to further promote the sustainable development of X enterprises byimproving the internal control system of X enterprise. Meanwhile, it also provides areference for China’s military enterprises to explore methods and ideas on internal controlsystem for their own characteristics.