Research On Internal Control Issues And Countermeasures Of KC Company

The term "internal control" dates back to the 1940s.The outbreak of the Enron event and the promulgation of the Sarbanes-Oxley Act have led to a gradual entry into the public view of internal control,and the growing number of corporate governance personnel and related scholars pay more attention to it.In this paper,choose the state-owned enterprise KC company as a case and take the 5 elements of the basic norms of the Basic Standard for Enterprise Internal Control as the clue to explore the company's internal control problems,and for each element put forward countermeasures.In the internal environment,it is recommended that KC Company consider the actual situation of the subsidiary companies,establish incompatible system of important positions between parent companies and subsidiary companies and choose to resume subsidiaries operating activities or absorb merged subsidiaries,in order to integrate the resources of subsidiary companies and revitalize state-owned assets.KC Company needs to improve the company's human resources management system,while improving the professional skills of related personnel.In risk assessment,KC does not identify and evaluate the company's risks.Because of the state-owned property rights system and corporate governance structure,enterprise management is not sensitive to the company's risk,so enterprise management should strengthen management knowledge about risk and adjust risk coping strategies according to the enterprise.In the control activities,according to the financial business process in investment activities and leasing activities,improve the withdrawal mechanism of investment assets and the contract management process of leasing activities,ensure that each node in the process has a person in charge.KC company's performance appraisal form is too single to motivate employees,meanwhile,adopt scientific and reasonable performance appraisal method to stimulate staffs work initiative.In the aspect of information and communication between departments,information disclosure is not sufficient,KC company can disclose important documents in the Bulletin board,KC use the traditional methods of communication,such as oral communication,written communication,the communication efficiency is low and it lacks the feedback mechanism of information.Rolling display of the notice and documents about employees on the electronic screen.Besides,a paperless office system is recommended.In the internal supervision,the board of supervisors and financial audit department can not fulfill the internal oversight responsibilities,the company's management should strengthen the understanding of the internal supervision,and adjust the position setting of the financial audit department,and make the internal audit department play the supervisory function.