The Study On Enterprise Internal Control Self-assessment

As internal control for the current Chinese enterprises generally weak, passive, and internal control self-assessment failed to play its due role in the functions of other issues, the author from "How to improve internal control" such a simple, practical ideas starting to implement responsibility to mobilize staff enthusiasm for the breakthrough, propose internal control self-assessment mechanism based on the implementation of responsibilities. Meanwhile, making expanded research on the theoretical and practical aspects of the self-assessment results utilization, trying to explain the effectiveness of this internal control self-assessment mechanism and open new roads for the improve and development of relevant systems.This article based on the comprehensive review of previous research done in the use of literature study method, use a combination of normative and case study methods to research. In different of case study on other internal control self-assessment is that, in fact, the author was inspired by the case-related practices, think them deeply, bringing them in the scope of normative study make theoretical analysis, then propose internal control self-assessment mechanism of this paper systematically, and mainly investigate the feasibility of using the evaluation results to incentive. The main conclusions of this paper:first, internal control self-assessment is not a substitute for the reference and guarantee role of external evaluation. The fundamental functional role in corporate governance is self-management and improvement. Therefore, internal control self-assessment and external evaluation should carry out their duties, complement each other. Second, companies should bring the staff performance of internal control duties in their performance appraisal system, and provide appropriate investment to maintain the effective operation of the internal control system, which is the performance payroll in all aspects of internal control personnel responsibilities. Third, the internal control investment should vary to its overall internal control level inversely. When the overall evaluation score rising even close out companies should cut down the investment in order to reduce maintenance costs. When the overall evaluation score is low, companies should increase investment in order to mobilize the enthusiasm of the staff to maintain the system.