Research On The Internal Control System Of State-owned Enterprises

Enterprise Internal Control is one of the most important frameworks in modern enterprise management,which is related with the system of enterprise and guarantees the functional operation from the policy aspect.The release of the Basic Standard for Enterprise Internal Control enters a strong and developmental period in the policy research of Enterprise Internal Control with an effort to establish and carry out it efficiently in Chinese enterprises.The state-owned enterprises are a pillar of China's national economy,and this is of great significance to the establishment of a socialist market economic structure and to the fast and healthy development of the economy.After years of development,both enterprise management and profits are enhanced and promoted comprehensively by taking the lion's share of the market.However,under the situation in which economic globalization and the world technological progress are accelerated,state-owned enterprises are facing increasingly fierce market competition with the growing complexity of enterprise structure,scope and way of management,and methods of operation.Therefore,pushing forward the institution of Enterprise Internal Control has become an important approach to influence and promote market development,and serves as a way to guide a fast and healthy sustainable development for state-owned enterprises.With such a fast development of state-owned enterprises,the disadvantages began to emerge,such as defective management agency internally,lack of standardization,poor practice in human resource,complicated leading positions and multiple roles within one as well as the problem of power of the leaders,leading to the unbalance of rewards and punishment system and inactivity among the employees.In order to establish systematic enterprise institution,for the state-owned enterprise,it has to perfect the system of legal person.However,it is right this system that reveals problems and shortcoming due to the past planned economy.Combined with the imperfect policy of employment and talent development,there is serious brain drain problem among state-owned enterprises.And this problem is commonly reflected in personal income,talent management,opportunity for promotion,and supporting measure.As a result,it has become a big obstruction for influencing the development of enterprises.JN Limited Co.is a stated-owned enterprise of the government ofDevelopment Zone of Dezhou in Shandong province,marketing in the construction of municipal roads,gas consumption,real estate and service industry,etc.The article takes JNLimited Co.as a case study to research its system of management,aiming to establish functional and efficient policy in Internal Control based on Basic Standard for Enterprise Internal Control.Meanwhile,by describing the specialty of state-owned enterprise and the general tendency of enterprise development and management,the article discusses how to establish precautionary and control institution from the perspective of internal control,thus offering protection mechanism for enterprise.