Research On Internal Control Of Jilin Province Technology Investment Fund Co.,LTD

With the rise of the knowledge economy, the global investment industry,especially the rapid development of venture investment industry, countries leaded bythe USA create the myth of the "new economy". The risk investment plays a veryimportant role in supporting the industrialization of innovative technology,cultivating enterprises grow rapidly，promoting the prosperity of today’s rapiddevelopment of high-tech and innovative economy.However, the investmentcompany realizes the significance that the inner control to the stable developmentafter facing varieties of management risks, it is very urgent to establish and promotethe inner control so as to strengthen the management, security the financialinformation reliable, protect the asset completely, in order to guard against theoperating management risk, promote the efficiency and guarantee the achievement ofthe strategic target.So as to comply with the tendency of the world of science andtechnology development and globalization competition， our country promotesthe reform which work of investment and financing system and the strategicadjustment of state-owned economy further, while acts as the government authorizedinvestment main part of state-owned investment company is facing with new choicesand challenges. The willingness and ability of independent venture appears day byday, and the establishment of science and technology venture firms came into beingwhich prefunded by the government.State-owned investment company in the investment market carrying out thecontributor’s role represents the government needs us change the company management ideas to adapt quickly to the works of the capital market, so as toimplement risk management effectively. This requires the state-owned investmentcompanies do some innovation and improvement based on the innercontrol mechanism reformation’s form and content objectively, otherwise these outof the internal control system of state-owned investment company businessactivities would certainly lead to the inefficient operation and wrong strategies ofinvesting and financing, resulting in the phenomena of the loss of state-owned assets.With the result that the investment company wants to keep on a develop, exceptmaking full use of favorable external environment and macroeconomic conditions,it also should make an individual perfect, establish and improve the inner controlsystem, improve the internal management capacity.Jilin Province Technology Investment Fund Company Limited as thetechnology investment platform, which as the inner-province high-tech achievementtransformation project, to realize the financial special funds investment withcompensation, was supported by the government, is one state-owned investmentcompany in such development strategic transformation period. The company basedon promoting the rapid development of the medium-sized and small enterprises,and actively explores the special financial funds in Jilin province paid withcompensation mode. The company steps into a new develop stage and level fromthe former government designated projects strive to achieve the business to scienceand technology projects for independent venture capital operation ability internalcontrol system and procedures, it needs further scientific inner control system andprocedure to ensure the realization of the strategic target. While it hasn’t establishedperfect management mechanism that adapts to capital market at present.This essay mainly uses the method of case analysis and literature analysis,makes use of the internal control problems of The Jilin Province Science andTechnology Investment Fund Limited Company as the object of the research, makes use of the present situation of China risk investment industry as the background, andbases on the five basic elements and the concept of internal control of theframework of internal control as the theoretical foundation, with the <The BasicStandard for Enterprise Internal Control> and <Supporting Guidelines for EnterpriseInternal control> promulgated by the state as the standard. Through the presentsituation of the company implementation of internal control, it diagnosesproblems of its internal control, the cause of these problems in-depth analysis,seeking to solve the corresponding problems. By strengthening the construction ofinternal control environment to ensure the smooth implementation of the internalcontrol system of the company.Through establishing a long-acting mechanism of risk management, followthe project before investment, investing,and after the investment closely, effectivecontrol the investment risk. By strengthening the system construction andthe process control of internal control, it formulates a reasonable investment processand the investment business management approaches. Through the constructionof strengthen internal supervision factors, establish the internal control evaluationsystem and reward and punishment mechanism, improve the company internalsupervision effectiveness and efficiency, to guarantee the effective running of theinternal control of the company. This will improve the company managementlevel and risk control ability, ensure every kind of business developflourishing, and play its positive role in promoting innovation of science andtechnology of Jilin province and the sustained and healthy economic andsocial development, has the important practical significance.