A Case Study On Internal Control System Of Conglomerate X

Group enterprise with its diversified characteristics as large scale, strong economic strength and cross-regional business, plays an indispensable role in the development of modern economy, and attracts attentions of all kinds of people. There has been large numbers of new group enterprises spawned recently, meanwhile various problems exposed in the process of the rapid development, especially the severe internal control problems. And during the Post international Financial Crisis Era, it is the most urgent subject for enterprises to adapt to the changing external environment, so as to avoid the fate of those bankrupt companies. As we all know, consolidation of risk management and establishment of the internal control system is not only significant support for the competitiveness of enterprises, but also a major driving force for the development of enterprises, last but not least, it’s the key to go through the global economic winter as well.Based on case study method, this paper selected one of the top ten enterprises in the field, as the research object, took a deep research and analysis of the X enterprise’s present situation and problems of the internal control system, through on-the-spot investigation, interview of enterprise employees and test implementation, and finally summarized that the performance of the internal control deficiencies are weak internal control environment, non-standardized investment management, imperfect comprehensive budget management, outdated application of ERP system and incomprehensive internal control system and procedures. Besides, with the angle of establishment of sound internal control, this paper is according to the theory of internal control and combined with the actual situation of X enterprise, in order to figure out some suggestions and measures for the construction and improvement of the internal control framework.