Study On Internal Control Of Construction Enterprises In China

With China’s rapid economic development and the coming of market economy era, the market environment which construction enterprises are facing is undergoing profound changes, and construction market competition is getting more intense. Construction is one of the pillar industry of the national economy, but the management level of construction enterprises in our country is not advanced enough, and can not achieve the modern construction industry business requirements, as the labor-intensive enterprises, construction companies’profit margins is getting increasingly reduced, added with the increasingly demanding needs of owners, the phenomenon of contracting with fund, significantly lower prices, higher and higher schedule and quality requirements, the traditional management methods were not suited to the modern market requirements, construction enterprises were forced to change to the management and benefit type enterprises. Construction companies’survival and development are bound to rely on the innovation of technology, systems and management, they need to be incorporated by standardized management, so as to maintain the healthy development of enterprises, and enhance their market competitiveness. Construction industry, as a special industry, due to its nature, business management is difficult, and therefore establishing a sound internal control system is becoming particularly important.Internal control effect by an entity’s board of directors, management and other personnel, is a general term of series methods and measures of self-planning, constraints, evaluation and control taken to protect the integrity of assets, ensure the reliability of financial reporting, and the effectiveness of the operating principles. Weak internal control is widespread in Chinese enterprises, and this extensive management no longer adapts the current competition situation, so the importance of internal control to enterprise management is self-evident. It penetrated into all areas of company, covering all aspects of the business, is a management system project integrating company’s people, financial and material. Under the circumstances of deteriorating market competition, effective internal controls, and the internal control environmentconstantly optimized allows businesses to be in a dominant position in the business operation, also it has a very big effect in promoting business.On the basis of research on related internal control theory, this paper analyzes the character and specialty of internal control of China’s entire construction industry, it adopts the case study method, with company ZW as an example, to discover and analyze the problems in the construction enterprises’internal control. According to ideas and concepts of COSO framework, the paper put forward countermeasures and suggestions of perfecting internal control system. Finally it indicating that internal control can regulate the activities of construction enterprises, help to reduce the construction business risk, improve economic efficiency, and also conducive to business development and growth.