Study On The System Of Risk-oriented Internal Control In Hongxu Real Estate Company

In the21st century, with the continuous deepening of WTO, countries areestablishing closer economic ties.As a result, internationalization of risk rise. The realestate industry plays an important role in China’s economic development, and thus theneed to establish a risk-based internal control system is urgent.The paper studies on the system of Risk-oriented Internal Control in Hongxu RealEstate Company. The current situation of domestic and foreign enterprises indicates thesignificance of establishing the risk-based internal control system in our country. Thenby reading current research, we acquire the situation of internal control systems. Andthe paper introduces the theory and corporate risk-based internal control theory, and toexplore the links and differences between the two.The research methods in this paperuse, literature analysis, inductive and deductive method, empirical research method.Introduces the necessity and feasibility of establishing a risk-based internal controlsystem in our country. We select a real estate company named Hongxu in capitalHeilongjiang, and introduce its organizational structure, functions, branches andproject development process.The paper highlights the status of internal control risk-based real estate company in Hongxu, including: the company’s development strategyobjective fuzzy, imperfect corporate governance structure, the company’s humanresources activities unreasonable,lack of corporate culture in internal process control,lack of appropriate internal controls and internal oversight activities ineffective. Andthen the paper analyzes the reasons for the existence of these phenomena. Presentsituation of internal control of the company based on the presence of，the paperproposes to build the security of real estate risk-based internal control system. Andinitially proposed principles should be followed, including: risk-oriented principle, theprinciple of comprehensiveness, sustainability principles and effective. Secondly, theproposed strategy should be established goals and objectives. Then, the proposedconstruction of concrete steps, including: business activity analysis, risk identification,risk assessment, risk response to initiatives to establish appropriate internal controlactivities and the strengthening of internal control monitoring activities. This article hopes to rebuild the system of Risk-oriented Internal Control inHongxu Real Estate Company, to provide some suggestions for strengthening internalcontrols in Hongxu Real Estate Company.