Research On The Internal Control Optimization Strategy Of N Airport

Thanks to rapid social economic development, living standards in our country have improved noticeably in recent decades. This has brought new opportunities for the airport enterprises. Yet with economic development comes the intensification of market competition, which has led to the increased need to strengthening airport risk management and internal control management. In recent years in particular, a few economic litigation occurred in N airport, leading to severe losses to state owned properties, further ringing alarm bells for enterprises’internal management.This paper is based on the Basic Internal Control Norms for Enterprises and its supporting guidelines while referring to relevant theories proposed in the Internal Control Framework issued by the COSO committee in the US. The paper starts with an introduction of relevant theories, recent developments and latest research results in the Chines and Western literature on internal control. This provides the theoretical basis for N airport to carry out its internal control. With an established theoretical foundation, the paper goes on to conduct a detailed analysis on the status quo of N airport’s internal control practices. This research approaches the potential issues in N airport’s internal control practices from 5 aspects: Internal environment, Risk assessment, Control activities, Information and Communication, Supervision. Optimization strategies to improve internal control are then presented to target these issues. These strategies serve as guidelines for N airport’s internal control practices and procedures to safeguard the airport’s future development.This paper mainly includes five sections. The first section is introduction, which focuses on the background and significance of the current research as well as research methodology. In the second section, the paper describes and summarises the definition, components and methods of internal control. The paper goes on to analyse the internal control procedures currently in place in the N airport. Applying the existing theories on internal control, the third section highlights the potential issues in N airport’s internal control practices. The fourth section includes recommendations targeting the issues previously discussed. The fifth section concludes the paper by providing summary comments of the current research.