Study On A Construction Corporation Control Environment

In the five elements of internal control, control environment is in the first place. It is the power to promote the business development and the core and foundation of other components, having a significant impact on the establishment and implementation of internal control. But construction industry internal control environment often has some characteristics, for example, managers who have relatively shallow sense of internal control govern the whole corporation, or lacking internal control professionals and legal awareness. Thus, researching the control environment of construction corporation has important practical significance.This paper firstly reviews the current research situation of control environment: studies on the control environment is mainly from the importance and components of the environment internal control, factors affecting the internal control environment, common problems in Chinese corporation’s control environment, advice and evaluation methods of control environment. Then, researches on the construction corporation’s control environment have pointed out that the main problem existed, but solutions’ maneuverability is relatively not strong. Therefore it is necessary to analyze the control environment theory in-depth, exploring how to improve the control environment.Secondly, analyzing construction industry’s control environment with the theory of dissipative structures, synergetic and chaos theory: first of all, basing on the theory of dissipative structures, organizations need to remain open keep the system away from equilibrium. Synergetic solve the problem about the dominant power forcing the system evolution. And the order parameter dominants the system evolution, making the system present a new ordered state. Chaos theory expresses the system’s inherent unity. So corporations should thoroughly research the external environment and their own conditions to establish the control environment in line with their needs; then, forming a learning atmosphere in the corporation to encourage self-renewal; at the same time, the manager’s attitude and philosophy dominant the effect of the control environment; furthermore, a good control environment is the common requirement of stakeholders to the corporation.Thirdly, elaborating the control environment’s current situation of A construction corporation: A construction corporation’s control environment is poor. Management have different problems on their awareness, organizational structure, strategy, human resources, social responsibility, and corporate culture, etc. Finally, in the basis of aforementioned theory and analysis, advising improving the A construction corporation’s control environment with the help of government, association and corporation itself.