The Study On The Internal Control System Of The Mining Enterprises

With the development of market economy, the enterprises are increasing in numbers. An enterprise has to enhance its own competitiveness for the ever-changing external environment and market situation. The internal management of an enterprise, to which the finance management is the key, functions as the determinant of its competitiveness. Financial management of an enterprise should focus on its internal control system. The scientific and effective internal control of an enterprise plays a crucial role in building organization system, financial operation, asset security and promoting the quality of account information, which would advance the management of the enterprise and help to achieve the strategic objectives of it. However, at present many Chinese enterprises don’t realize the importance of internal control, ignoring relevant theories and practices. Consequently, the study on the internal control of an enterprise possesses twofold values which reside in theory and practice.Recently, Chinese mining industry is confronted with sever development situation. The requirement of capacity and structure adjustment was put forward at the Third Plenary Session of the 18 th Central Committee of the Communist Party, and the real estate regulation has been strengthened, because of which the mining enterprises should enhance their internal management and improve their economic efficiency.This thesis applies the method of case study. First of all, based on the relevant theory and researches of internal control home and abroad, the present author analyses the goal and frame of internal control, and ERM frame. Secondly, the case study of A company is introduced. The achievements and problems of the internal control in A company are analyzed, especially inadequate cost and risk control, incomplete mining process, and poor communication channels. Finally, based on the case study of A company, the present author puts forward advice for improvement from the aspects of collating the key risky points, perfecting the internal control system, strengthening process control and internal auditing. And then induces a thought and method that mining enterprises need to select control key points specifically according to their own industry characteristics and existing key risk points and coordinating with scientific corporate governance structure and effective supervision to perfect the internal control system.