Research On The Internal Environment Optimization Of KD Research Institute

The internal control is the foundation of enterprise management. It provides reasonable guarantee for the sustained and healthy development of enterprises and smooth realization of the strategic objectives. Since the late twentieth century,in the domestic and foreign capital markets, financial fraud and corporate executives corruption cases led to concern of the international community on importance of internal control.Many countries including Chinapromote the continuous development and improvement of enterprise internal control construction through a variety of means. But the construction of internal control is a systematic engineering, the effect of the implementation is restricted by many factors, especially the internal environmental factor, which is the foundation of successful implementation of enterprise internal control.Based on the analysis and review of internal control and internal environment theory, according to the internal environment factors prescribed in "The Basic Norms of Internal Control" and "The Application Guidelines for Enterprise Internal Control" jointly issued by the Ministry of Finance and the other five ministries, using the method of linking theory with practice, this paper presents systematic descriptionsof the current status of the governance structure, organization and distribution of responsibilities, internal audit, human resources and enterprise culture in the KD Research Institute, a detailed analysis of the main problems, and optimazing measures to further improve the internal environment of the KD Research Institute in the above five aspects. This case report is not only conducive to the promotion of the internal environment of KD, but also provides a useful reference for similar military research institutes in internal control construction.