Based On The COSO Framework Of The Research On Constructing Internal Control System Of Qingdao Hex Company

With the development of social economy and the unceasing expansion of economic scale, modern enterprise internal control in the increasingly complex economic environment management process gradually being accepted, is the inevitable product of social development. After our country enterprise joins WTO, facing the globalization competition, on the one hand is the continuous influx of foreign Multi-National Corporation, on the other hand, is the enterprise internal control the grim situation, many enterprises ignore or belittle the importance of internal control, reason coupled with the company governance structure and the unreasonable structure of the organization and personnel quality is low, causing the internal control of Chinese enterprises is generally weak. At the same time, the COSO framework developed by the American Institute of Certified Public Accountants led anti false financial report become the measure of enterprise internal control level of standard. In order to enable enterprises to better adapt to the increasingly fierce competition, the construction of enterprise internal control system based on COSO framework is imminent.The research objective of this paper is a company, which is a manufacturing company for compounding. Because of some reasons, they hasn’t established the full internal control system. It causes that the internal control criterion is not clear, the responsibility is not fully understood, and the operation is lack of authorization, supervision and restriction mechanism. It affected the development of the company seriously and brought a big risk for company’s operation and management. With the background of domestic internal control construction and the internal control status of A, it will be of high importance to combine the advanced internal control theory with A company’s internal control status and give a good internal control design for A company and ensure it to operate effectively. It will also helpful for similar company as A company to improve the internal control design.The paper consists of six chapters. The first chapter is introduction, which introduces the research background, the purpose and significance, the research result of domestic and abroad. The second chapter is basic introduction for internal control theory; it includes the definition and five factors for internal control. Based on the introduction for A company’s basic information, the third chapter researches the present status of A company’s internal control from the five internal control factors of internal environment, risk evaluation, control activity, information and communication, internal supervision etc, and analyzes the reason of the internal control problem. The fourth chapter designs the internal control system from five factors based on the business characters of A company. And it also gives an emphasis on the combination of control activities and main business cycles of A company. The fifth chapter analyzes the measures to be taken to ensure the effective operation for A company’s internal control system. The last part is conclusion, to point the research result and expectation for future research.