Internal Control Of Construction Enterprises

Construction accounted for an important position in China’s economic construction, it becomes a pillar industry of China’s economic development as steel and automobile industries, and is closely related to the development of the national economy.From the domestic situation, China’s infrastructure investment increased year by year, which greatly promoted the development of the domestic construction industry; from the international situation, China’s construction enterprises’ international missions increased year by year, and they are trying to accelerate its pace of globalization. The steady growth of the construction industry has an important contribution to the sound development of national economy. Thus, construction companies urgently need to re-management as the core business philosophy, the fine and the sustainable management model, focus on the enterprise meticulous, and be stronger in the critical period of comprehensive and rapid development of overseas business. From the overall development of the construction industry, China’s construction industry has a broad space and good prospects for development.In recent years, on the positive impact of the environment, there were many construction tasks, and there were a lot of construction enterprises in corresponding, construction enterprises’task and output value were also growing, but the profit space reduced year by year. In this grim situation, many companies still exist illegal subcontracting, non-open bidding, non-sun procurement, embezzlement project funds, illegal accounts and other issues. Ultimately the causes of these problems stems from the failure of internal control. Internal control is not only to ensure the effective implementation of national policies and industry regulations, but also to ensure proper implementation of the enterprise management system and business policy. Internal control system is essential to protect the security and integrity of the assets of the enterprise, improve the quality of accounting information, reduce business risk and other aspects, it is also important to enhance management efficiency and achieve the basic conditions for the operation and management objectives.In order to improve the economic efficiency of enterprises, strengthen economic management, ensure true and reliable financial information, achieve safe and reliable assets and realize corporate strategic objectives, business primarily by sound and effective internal control mechanisms. China construction enterprises’internal control mechanisms are basically at the exploration stage and the initial stage, the actual level of the development of the internal control and internal control aspects are far from the western developed countries, which seriously hampered the healthy and rapid development of enterprises. At the same time, China’s current economic situation is also an urgent requirement for construction enterprises to enhance strict internal control system, standardize the management measures to ensure their stable development, and to improve the efficiency and rapid development.This paper analyzed the problems of construction enterprises’internal control system from its industry features and business process. And the six problems including contract management, quality control, safety management, environmental control, cost control and budget control were analyzed.Take ZT Construction Company as example, the current internal control status as well as the implementation of the internal control system were described. The problems in internal environment, risk management, control activities, information communication, as well as the causes were analyzed.Finally, with empirical analysis and the characteristics of the industry, the five elements of internal control in construction enterprise including internal environment, risk management, control activities, information communication, monitoring mechanisms were proposed.