Research On The Internal Control Of China Iron And Steel Enterprises

Since the Reform and Opening up, Iron and steel enterprise has always been one of the pillar industries in our country and it has made great contributions for our country’s economic development. Its superb development prospects have produced profound effect on our country’s economy. Internal control can promote the enterprise’s development and improve its economic conditions from a certain extent. Today, as the economic globalization, enterprises form complete, specified internal control mechanism which play particularly important role for the enterprises. Steel, as capital-intensive enterprise, it needs more cautious on the management. But under the influence of social and economic development, it faces a series of problems. However, good internal control system can evade some risks for the enterprises, if grasping internal control and applied it to the iron and steel enterprises reasonably in our country, it not only can reduce and avoid many problems, but reduce the cost of waste, poor management, poor earnings quality and so on for the enterprise.This article adopting the method of case study, handing from the basic theory of internal control, combining the operating characteristics of iron and steel enterprises in our country, introduces the requirements of the five elements that our country’s iron and steel enterprises to the internal control and introduces the present situation of internal control in detail. Finally, through the basic introduction of the ZG group, its financial status and through the detailed analysis about the risk that the ZG group faces, detail study about the internal control problem that the ZG group faces, it gets the ZG group created various risks due to internal control’s various insufficient and at the same time, it gives the detail analysis for the internal control of the ZG group. At last, it makes out some suggestions to iron and steel enterprises. the ZG group is rented as one of the leading steel enterprises in China and the problems produced from its development also have certain representativeness that the ZG group’s problem is not only its own. Only fully studying the problems and finding out the solution, it can effectively curb the problems appearing of iron and steel industry and ensure its healthy development.