Research On The Optimization Of Internal Financial Control System Tianche Company

Enterprise internal financial control is to ensure the enterprise financial objectives,it is the core of enterprise internal control and its theory development has gone through a long period of time.China's internal controls have fallen far behind the Western countries in both theories and practices.This article constructs city companies' internal financial control system based on latest internal control theory from COSO Report and China's city companies' internal controls status.This article consists of four parts.The first part briefly introduces internal control theory and financial control theory.The second part briefly introduces the city companies.The third part analyzes the current city companies' internal financial control system and existing problems,which includes the analysis on the internal control environment,foreign investment control,purchase and payment process control,budget management,funds management,sales and account receivable control.The fourth part is the core of the article.It provides the main objective on city companies' internal financial control system,which is to achieve effective risk control and ensure effective internal financial control system operation by constructing the overall framework of internal financial controls,improving the financial control system,organizing major financial business processes,identifying key control points,strengthening the duties of relevant departments and staff and perfecting the system rules;Constructs city companies' financial control frame based on the control environment,risk assessment,control activities,information and communication,monitoring from COSO overall framework on internal control;Completes city companies' budget management,cost control,fund management,payment management,foreign investments and other financial control activities.This article has constructed city companies' financial control system by consolidating the systematical studies on the enterprise internal financial control theory into the practice.