Research On The Legal System Of Enterprise Internal Control In China

Many financial fraud cases exposed the weak and failure of the enterprise internal control problems in China,such as the case of “Zheng Bai Wen”,"Joan Min Yuan","Green-Land" and so on.To rebuild public confidence in the listed companies,the ministry of finance and other four ministries of China have promulgated "The basic norms of enterprise internal control" and "Supporting guidelines for enterprise internal control".These norms and guidelines have been implemented in listed companies and formed the initial internal control system,which greatly promoted the development of enterprise internal control legal system of China.While the enterprise internal control of China in the strict legal level is still blank and in other legal norms level is not sound yet.By contrast,the United States enacted the Sarbanes-Oxley Act in July 2002(hereinafter referred to as the SOX Act),creating a new oversight mechanism of public enterprises for external audits,which has had a tremendous impact on the world.In China,enterprise internal control legal system has just started,and the theoretical research and the practical experience are inadequate.Under the realistic background that enterprises and the public paid little attention on the internal control of legal system,this thesis elaborates on the relevant contents of the internal control legal system.On the basis of reviewing the laws and regulations of internal control in China at this stage and drawing lessons from the development practice of American legislation,this thesis analyzes the problems of China's internal control legislation and legal supervision to explore countermeasures.It also analyzes and explores the cause of China's enterprise internal control legislation,and expounds the idea of constructing and perfecting the legal framework of China's enterprise internal control.In addition to the Introduction and Conclusion,this thesis includes three chapters.The first chapter is the overview of the enterprise internal control legal system.On the basis of describing the concept,objectives and elements of enterprise internal control,there are three benefits and necessity to strengthen the enterprise internal control legislation,which is to enhance the enterprise's own benign requirements,to ensure the healthy development of the economic market,and to strengthen the ability of risk prevention in the face of the economic crisis.Secondly,it is divided into two parts to analyze the development process of the enterprise internal control.As a contrast,one part takes the example of United States as the advanced and perfect legislation in the internal control,and through the brief introduction of the norms in American legal and administrative law to elaborate the practice and development of American enterprise internal control.The other part is to elaborate the development of internal control thoughts and legal systems in China since ancient times.The second chapter mainly analyzes the present situation and the problems of the enterprise internal control legal system in our country.Firstly,it introduces the key laws and regulations of the enterprise internal control through the three levels which is law,administrative regulations and departmental rules,and industry standards,then summarize the present situation of legislation.Secondly,the thesis puts forward three problems: the legal system is not perfect,and the legal environment needs to be improved,and the subject of the enterprise legal liability is not specific.In the aspect of legal supervision,there are also three issues which is the low illegal cost,the imperfect insider's report and the protection mechanism,and the weak external supervision.The above description of the status quo and the analysis of the problem laid the foundation for the following improvement suggestions.In the third chapter,some suggestions have been put forward on how to improve the legal system of enterprise internal control in our country.At the legislative level,it is suggested that the legal system and the legal environment of internal control should be improved,and the legal liability of internal control should be clarified.On the level of legal supervision,it is suggested to increase the illegal cost of enterprise internal control,to improve the enterprise internal reporting and protection mechanism,and to strengthen the external supervision role of internal control in our country.This thesis is closely connected with the present situation of the development of the internal control legal system in our country,and also absorbs the research achievements of the predecessors,draws lessons from the successful experience of foreign countries.By integrating the views of economics and management,the thesis analyzes the existing problems in the internal control legal system from the law angle,and puts forward a comprehensive proposal on the legal system of enterprise internal control in the hope of providing theoretical support and legal system guarantee for the necessity of legalization of enterprise internal control in our country,and it is a small contribution to the perfection of the enterprise internal control legal system.