Research On The Internal Control Effectiveness Evaluationg And Improvement Of Harbin Electric Company Limited

Nowadays, the national economy is steadily developing. Internal control as a modern enterprise management mechanism has been widely concerned by listed companies and the central enterprises under the impetus of government departments. For listed companies and the central enterprises, this trend of internal control is not only opportunities but also challenges. Establishment of an internal control system plays an important role in promoting long-term development of enterprises. Elegant internal control system can optimize enterprise management mode, balance power and responsibilities, reduce operational risks and operating costs, improve the economic benefits and enhance the public image of enterprises. In recent years, Harbin Electric Co., Ltd.(hereinafter referred to as Harbin Electric Shares) as a representative of the central enterprises has begun to try to construct internal control system and achieved initial results. However, due to the lack of appropriate management experience and relevant indicators to guide, there are still some problems in actual operation of the internal control process. Therefore, research on the effectiveness of internal control and establishment of internal control effectiveness evaluation indicator system is very important for the central enterprises.Based on the analysis results of Harbin Electric Co., Ltd.’ internal control status quo, this paper has constructed a set of internal control effectiveness evaluation indicator system. First of all, this paper presents the background of this topic and recounts the purpose and significance of the research, summarizes and analyzes the current research in related fields and describes the content and methods. Secondly, this paper introduces the actual situation of construction, design and operation of internal control of Harbin Electric Shares, raises the main issues of internal control in Harbin Electric Shares. Then, based on the construction principles of internal control effectiveness evaluation indicator system, which includes comprehensive system principle, risk-oriented principle, cost-benefit principle and operability principle, this paper constructs internal control effectiveness evaluation indicator system which fits the characteristics of the company. This index system contains5first level indicator and24second level indicators, evaluates itself by multi-stage generalized fuzzy comprehensive evaluation method and obtains the evaluation results on effectiveness of internal control of Harbin Electric Shares.At last, based on the evaluation results, this paper proposes measures to improve the effectiveness of internal control, which contains optimizing the internal control environment, improving the risk response and risk monitoring, strengthening the ability to control operating activities, actively improving information and exchange mechanism, improving the effectiveness of internal oversight.This internal control effectiveness evaluation indicator system provides constructive comments for scientifically evaluating the effectiveness of internal control of Harbin Electric Co., Ltd. and raising relevant recommendations. And it will continue to optimize and improve in practical work in the future.