Research On Internal Control Of Equity Investment In WQ Group

To face the prosperity of the new economy,the building of The Belt and Road has been accelerated.With this situation,investment is unavoidable for enterprises which commit to expand their scales and gain the capital appreciation.Considering any equity investment activity is large,long cycle and full of risk,the enterprise to avoid risks and get gains must further improve the internal control of the system of equity investment.In this paper,the author chose the WQ Group as the object of study,which attached great importance to the construction of internal control of equity investment system,but just established an early-stage system that was not perfect.This paper focused on the study WQ Group’s internal control of equity investment.The author expected that the present paper could provide suggestions for other groups which aim to establish a more perfect system about internal control of equity investment.This paper first introduced the current situation of WQ Group’s internal control management of equity investment from the three perspectives of equity investment management approval authority,equity investment management control and equity investment business process.Secondly,the author analyzed the problem existing in the WQ Group’s internal control of equity investment.There were main eight problems including the internal audit department was not independent;the investment management committee lacked a clear division of labor responsibility;employee performance assessment didn’t link with the investment project;WQ Group neglected the construction of enterprise’s culture;the WQ Group lacked the analysis system about risk identification and didn’t carry out the effective measures to avoid risks;information of the equity investment activities wasn’t linked timely and the weak supervision existed in internal control of investment.At the same time,it analyzed the problems existing in the process of project declaration,approval and management of equity investment.Finally,according to the problems of internal control of equity investment in WQ Group,the corresponding suggestions were put forward from the following aspects of equity investment internal control environment construction,equity investment activity risk management system,equity investment business process,information communication and internal supervision.