Study On Private Enterprises' Internal Control Based On Enterprise Lifecycle Theory

On the theoretical basis of Enterprise Lifecycle Theory and Internal Control Theory, this paper mainly studies on the strategies and internal control characteristics of private enterprises at different lifecycle stages on the purpose of constructing internal control framework of private enterprises correspondingly. Under the market environment of “ Encouraging People to Start Their Own Businesses and Make Innovations ”, this paper provides an internal control framework of reference and applicability for the massive but different scales of private enterprises. It adopts normative research method, on the basis of searching and reviewing the literature, putting forward to divide enterprise lifecycle into start-up, development, maturity and metamorphosis stage. Different development stages present different strategic goals and internal control characteristics. Therefore, with the idea of contingency, this paper constructs internal control framework for private enterprises specifically.This study adheres to strategy-oriented and cost-benefit principle basically. Private enterprises at start-up stage should give priority to internal check, insure the separation of incompatible duties, and focus on the establishment and improvement of monetary fund control activity. Private enterprises at development stage should give emphasis on internal accounting control, initially build up scientific and reasonable organization,human resource system, incentive and constraint mechanism. Private enterprises at maturity stage should optimize internal control framework, perfect organization structure adapting to dynamic strategies, combine human resource system with incentive and constraint mechanism, establish “People-oriented” enterprise culture, fulfilling social responsibility and comprehensive risk management system, strengthen the management of internal information system. Private enterprises at metamorphosis stage should have management idea of reform and innovation, form system culture and strengthen crisis awareness to achieve a new round of development.