The Study Of Large-Scale Enterprises’ Internal Control Execution Index In China

In the process of improving the modern enterprise system and integrating into the international environment rapidly, it is imminent for enterprises to establish a sound internal control system and strictly enforce at the same time. China issued Basic Norms of Internal Control in June 2008 and Enterprise Internal Control Guidelines in April 2010, which marks the enterprise internal control standard system is basically completed in China. With the constant improvement of enterprise internal control standard, most companies have established a comprehensive internal control system. However, according to the recent external audit and the occurrence of larger economic cases, it is usually not that companies have no relevant policies and procedures, but lack of internal control execution. As early as 1947, a design engineer in the United States, Myers, said a seemingly dull but very thorough sentence in his published essay Value Analysis Program:"People do not need a product itself, but need the function that it can prove." It quickly becomes a famous economics sentence, which also applies to internal control theory. What companies need is not only good internal control system, but also the business benefits brought by the effective implementation of internal controls. Therefore, improving internal control system and the risk management to enhance internal control execution, has become an inevitable choice for companies to keep operation continuously.According to the domestic and foreign research status, the study of internal control issues mainly point at general corporate but not large-scale enterprise, and the empirical research on the internal control from the view of execution is scarcer. Therefore, this essay regards large-scale enterprises as the research object from the perspective of execution, which can be described as a new research perspective. The following is the basic research methods of this article:Firstly, define the related concepts of internal control execution, combining with execution theoretical system and internal control theoretical framework. Secondly, analyze factors that influencing execution of large-scale interprises’internal control, then build index system of internal control execution. Finally, use factor analysis to construct the exponential model of internal control execution with the help of SPSS 19.0 based on 256 valid survey data, which is evaluated later by multiple linear regression.According to the content of theoretical analysis and the results of empirical analysis, the execution of large-scale enterprise internal control really need to improve, especially in the execution culture, which gets the lowest score and needs to be enhanced. If enterprises want to improve the overall strength, they must establish a sound internal control system combine their actual and then strictly implement. This paper puts forward suggestions to enhance the execution of large-scale enterprises’ internal control from the aspects of the formulation of target system, the integration of behavior system, the implementation of supervision and evaluation system, and the creation of execution culture.