Based On The Value Orientation Of The Internal Control Framework

Modern enterprise management has already entered into the value management era which sets exploring enterprise’s hidden value as the goal, pursuing profit and capital increment is the fundamental objective of enterprise value management. Internal control, as the “immune system” which is embedded into the activities organized by enterprises, it has not only need to defend the negative factors which is threatening to the existence and development of enterprise, but also comply with the internal demands of enterprise’s pursuing for the value increment and provide effective motivation for enterprise’s long-term development. Currently, there has rich result of the internal control theory both at home and abroad, however, most scholars are restricted themselves into a narrow researching range which sets the finance and audit as orientations, they haven’t formed an uniform researching framework of the internal control, and that leads to the internal control falled behind the era demands of enterprise value creation and restricted the due-function development of the internal control. The reason of that is because people always stop at the research on the internal control concept itself, but has ignored the research on the theory basis of internal control, such as the orientations of nature, object and goal level towards the internal control,and above altogether lead to the backwardness of internal control theory comparing to practical application. Therefore, it is necessary to make some adjustment based on the previous research of internal control, on the one hand, it’s good for the theory completion of internal control itself, on the other hand, and it also benefits the sustainable development of enterprises.Internal control and value management are both the effective methods for promoting the management level of enterprise’s operation. To develop the internal control’s important function on enterprise’s production and operation and furthest promote the whole value of the enterprise, the key point lays in finding the common logistic staring point between the internal control and value management, developing the synergy of both sides, and trying to build a internal control framework which has the function to create values. While any constitution of a theory framework must put the objective practice activity of thing’s development as its basis.So this paper starts its research as the following logic: firstly, making the historical investigation on the evolution of internal control’s theory and practice, with the purpose of unveiling the objective regularity of internal control’s evolution. On the basis of reasonable learning of the existed research achievement of internal control framework, to point out it’s deficiency to fully prove that it’s necessary and available to build an internal controlframework based on the orientation of value creation. Secondly, setting the whole enterprise as a starting point and combining the related contents of the enterprise value, then come up with the content institution of the internal control framework which needs to be built. This paper believes that an integrated internal control framework should contain two parts: the basic theory and application theory of internal control. The basic theory is the researching foundation of internal control system, which restricts the range, characteristics and functions of the researching object and guides the practice application of internal control; while the application theory is the summary and conclusion of internal control practice, it emphasizes on researching the specific and applied problems of internal control, the two theories are the necessary components of the internal control framework under the orientation of value creation, and both of them are indispensable. This paper set the nature of internal control as logical staring point, and by this to infer the conceptual elements of internal control, such as goal, level and object, etc. meanwhile, put the blending point between internal control and value drive elements as the premise, to build an internal control application theory framework which sets the environment control as the basis, activity control as core, supervision and comment as subsequent guarantee, information and communication as supporting platform.Finally, makes a conclusion on the researching contents of this paper and points out the future researching directions.