Risk-Based Internal Control Evaluation And Improvement In High-Tech Enterprise A

Into the 21st century, with the rapid development of socioeconomic and the deepening of knowledge and practice,<Risk Management-Integrated Framework> came into being.This framework reposition internal control from the important perspective of risk management and put forward new requirements to enterprise internal control.The internal control is a dynamic cycle process include construction, implementation, evaluation, and improvement.Therefore, the effective improvement of internal control is based on an objective evaluation of the internal control.Hi-tech enterprises as the core power of China's economic development, is facing more complex internal and external environment than traditional industries.How to build a risk-based internal control is a main problem high-tech enterprises need to solve.Company A is a high-tech enterprise located in Beijing.It growing fast recent years, but its poor internal control lagged behind the pace of development obviously, along with the neglect of risk management and the negative attitude of risk dealing,all these factors contribute to the Company A's poor ability to withstand risks both from internal and external. Currently Company A has completed the relevant preparatory work for listing on the NEEQ,and it is expected make it in Sep.2016.The new regulatory regime put forward higher requirements on the company's internal control.For the above situation, the paper take Company A as the research object, first, outline the basic information of Company A,combined with first-hand data,analyzes the it's business situation and major risks facing with,lay the foundation for subsequent evaluation and analysis work; then cite the internal control evaluation system (Chen GuanTing,2013) which based on the eight elements of risk management framework, use FCE method combined the survey results for the Company A's current internal control and finally the comprehensive score is 79.98. In details the internal environment score is 78.12, goal-setting score is 81.09, matter identification score is 69.80, risk assessment score is 74.82, risk response score is 77.68, control activity score is 87.22, information and communication score is 90.85 points and 75.05 points for supervision; finally base on the analysis content above, put forward specific improvement recommendations for internal environment, matter identification, risk assessment, risk response and supervision which socre is lower.The results of this paper will help Company A more intuitive identified the internal control deficiencies and make improvements, then make preparation for the coming listing on the NEEQ.Effective control the operating volatility in the heavy risk industry environment; The results of this study can also bring some reference to other hi-tech enterprise internal control evaluation and improvement.