Research On Internal Control Of S Real Estate Company

Real estate industry is a combination of both high-risk and high-revenue."Money shortage", exhaustion of market funding and the HSBC PMI data in2013, as well as complex economic environment, all of these are new challenges to internal control and risk management of real estate enterprises. For internal control policies, Chinese government introduced promulgated "Essential Requirements" and three supporting guidelines to support the market, which forms the basic theoretical system framework of internal control with Chinese characteristics. But the scope of the relevant Requirements and guidelines issued by the executive is very limited:it requires a implementation of listed companies, and a reference implementation of the SME. So this paper, taking a non-listed real estate company as a case to analyze its internal control system. With this analysis, we can improve the management level of the enterprise by providing advice and recommendations to its authorities, on the other hand we can offer suggestions for the non-listed real estate enterprise at the same size in control system design.This paper contains six chapters, which are divided into four parts. Through a method combining of fieldwork, interviews and questionnaires, the author introduced a solution for internal controls of S real estate companies. Fieldwork practice rely mainly on the basic understanding of the company’s economic and business conditions. Interviews includes an one-on-one point exchange from their point of view which gives the author a deep understanding of the basic conditions of the company’s internal controls. Questionnaires includes five elements of the internal control framework which obtained staff evaluation of internal control. Through the three methods above, the author got an insight into the internal control of company. And the author also presents an analysis of existing problems, which are small in size, lack of the knowledge of internal control and limited management cost between managers. With this analysis, the author introduced a solution. In the final, there is a summary for limitation of this paper. The main contribution of this study is to offer solutions for corporate shareholders and managers to get a comprehensive and systematic understanding of enterprise management existing problems, change the status of internal controls and reduce operational risks, which are helpful for making investment decisions, improving government’s requirements for regulating non-listed real estate companies, and the perfection of internal control system for companies at similar size. In this paper, there remains many shortcomings. The design of questionnaire, in some extent, is not so reasonable for the limitation of interviewer’s time, professional standards and the sensibility of the question itself. While the quality of interviews are also decided by the willingness, comprehensiveness, authenticity of interviewers and conversation skills of staff. Questions above are non-controllable factors. For this solution for internal control, which requires the test of time, so this paper only study this thesis from a theoretical level for it is difficult to reach the goal during internship. The research of Inter control for a certain enterprise is the only goal, which brings a limitation to this paper.