Internal Control Optimization Of Qilianshan Cement Group Co.,ltd

An effective internal control can help the company to improve its competence of risk assessment, prevent or detected and corrected omission and misstatement, and achieve the effectiveness and efficiency of operations. Since the COSO committee proposed the theory of the framework of internal control in 1992,the financial department and other four departments had issued Guidelines for Enterprise Internal Control on 26 th April, 2010 to establish Based on the theory of the framework of internal control, which combined with Basic Norms of Internal Control was issued in May 2008. These two principles are consisted of Chinese enterprise internal control.Financial department with other four relevant departments made a general regulation in2011, which required listing companies need to carry out the theory of the framework of internal control in 1st January, 2011 and main board listing companies need to implement this framework in 2012, and non-listing large medium companies are also encouraged to carry out these regulations.Qilianshan Cement Group Co.,Ltd. is a listing company which is the second listing company in Gansu Province, is the largest cement manufacturer in the area of Gansu and Qinghai. In 2012, financial department requested the company established the team of internal control, and Beijing Zhongrong Galaxy International Business Management Consultant Co.,Ltd is employed as management consultant. The responsibility of them is to optimizing the existing system of internal control.This article describes the international theories of internal control and Chinese internal control framework, and then critical analyse the limitations and causes of the existing internal control of Qilianshan Cement Group Co.,Ltd. According to analysis from two aspects:organisation of the company and money funds, the solutions that related how to improve existing internal control can be summarised, and also the company’s current position, the principles and objectives of China’s conceptual framework of internal control have been considered. Finally,some effective measurements also concluded to make sure the feasibility of these solutions’ implementation. According to analyse and discuss optimization of internal control of Qilianshan Cement Group Co.,Ltd, it has important significance to guide the effective implement of internal control of Qilianshan Cement Group Co.,Ltd, moreover, the inspiration of building or optimizing internal control of Chinese corporation can be provided by this case.