Intenal Control Problem Of State-Owned Group In A Area Based On The Public Fiduciary Responsibility Theory

After the reform and opening up,with the rapid development of China’s industrialization and urbanization,the demand for constructive financing has been increasing due to the acceleration of local infrastructure construction.As early as the 1990 s,there was a pioneering local government which tried to solve the problem of insufficient funds in the construction process raising funds through the establishment of local state-owned group.In this way,the local government uses the local state-owned assets as a link,connects bank which have sufficient financial security and the market to build a bridge in the protection of local infrastructure construction in an orderly manner,driven by rapid development of local economy.However,due to the imperfect laws and regulations,incomplete supervision,local state-owned group breed a series of urgent problems,as those groups continually develop and grow up.one of the most urgent problems is the scale of the debt and the unreasonable operation process in which the local government use the loopholes of rules to improve security through various means.dating from the root causes,the unreasonable concept of political achievements of the government is a prime inducement,because the local government overemphasize the speed and scale of economic development,not consider the actual situation of local economic;lacking imperfect internal control system in the local state-owned group also is important inducement.Under the background which the "Opinions on the implementation of quota management of local government debt" has been issued by the Ministry of Finance in 2011,this paper explores the internal situation of local state-owned assets group from the perspective of public fiduciary duty Control the problem to try to solve the above-mentioned problems.The Opinion clearly states that the government will gradually cancel the government financing that the local state-owned assets group currently relies on,develop local state-owned assets with good returns and capital flows to promote the market transformation.In this interim period,the government will actively support the group through promoting the adoption of government capital and private capital Two-way cooperation or funding the purchase of the Group to provide relevant services.Local state-owned assets group should strengthen the internal control system to achieve the transformation and upgrading as soon as possible before the relevant documents is implemented,with eliminating the influence of the financing from government.Firstly,the paper summarizes the literatures on internal control at home and abroad,and also points out the literature research on the internal control of foreign public service departments and domestic local state-owned assets group in order to provide the relevant ideas for further study of the internal control of A state-owned assets group.Secondly,the author elaborates the relevant theories of internal control and public fiduciary duty,and paves the way for analyzing the internal control of the enterprise from the perspective of the classification of public fiduciary responsibility.Thirdly,combined with the special nature of China’s local state-owned assets,the internal control of local state-owned assets has been standardized.Then this paper summarizes the characteristics of its internal control and find out the existing problems in A area state-owned group by way of the case investigation method.Finally,based on the theory of public fiduciary responsibility and relevant rules and regulations,the author puts forward some suggestions for improving the internal control of AI state-owned assets group.