Research On The Optimization Of Internal Control System In A Enterprise

With the rapid development of the global economy,the economic situation in all countries has undergone tremendous changes.The Chinese economy has achieved impressive results over the past 30 years since the reform and opening-up policy.This is due to the constant efforts of all enterprises to continuously deliver energy to the Chinese economy.As an enterprise under this new situation,in the face of a changing market,it is necessary to have the ability to control risks.In addition to the dynamic market risks,the internal risks within the enterprise directly affect its operating conditions and sustainable development.In order to effectively prevent risk or reduce the loss of risk,an internal control system is needed.The internal control of an enterprise is an important part of modern enterprise management system.The establishment of an internal control system would guarantee the operation and development of an enterprise.How to establish an internal control system that is suitable for the development of an enterprises and how to use the system to activate the development of an enterprises are the realistic problems for many enterprises nowadays.This paper further explains the importance of internal control system by analyzing the basic theory of internal control system、the significance of establishing internal control system and the process and effect of internal control in practice.As the establishment of a sound internal control system is considered to be an effective measure to ensure that modern enterprises can enhance economic efficiency,strengthen economic management and protect the safety and stability of assets,the emphasis and research on the internal control system has never stopped since the early 20th century.Foreign studies on the internal control system started in the 20th century.So far,the C-O-S-O Committee has established a more systematic "internal control-overall framework" and released an updated version of the "Enterprise Risk Management Framework" in 2017.Many countries have also strengthened the internal control and management of enterprises through legislation and other means,making the internal control system increasingly become a"voucher" and a "passport" for enterprises to enter the capital market.Concerns about the internal control of enterprises in China started in the 1990s,and the construction of internal control is still at an exploratory and initial stage.After more than 30 years of research and development,we have not form an internal control system yet as perfect as the C-O-S-O framework at present.However,In the practice of exploration combined with laws and guidelines promulgated by the government,we gradually formed a suitable internal control system for enterprises and are getting continuous improvement.This article chooses A’s internal control system as the research object,starts with the domestic and foreign research on the internal control theory of the enterprise,briefly describes the course of its development,and then elaborates the practical meaning of internal control of an enterprise through the theoretical basis and basic principles of the internal control,after a stronger theoretical acknowledgement,it takes step on further research.Then it briefly introduces the basic situation of enterprise A,introduces the current internal control of enterprise A from the five elements of the theoretical framework of enterprise internal control,namely control environment,risk assessment,control activities,information and communication and internal supervision.It also objectively pointed out the existing problems,then put forward the necessity of optimizing the internal control system of enterprise A.Finally,it provides corresponding measures for optimizing internal control system aiming at the problems and imperfections of enterprise A in terms of the five elements of internal control.These measures would promotes the continuous improvement of enterprise A’s internal control system in future operation management and supply the enterprise A with strong competitiveness facing the increasingly fierce international market.This paper fully implements the principle of the combination of theory and practice,studies the theory of internal control first,and then combines the actual problems of enterprise A,so as to put forward the corresponding solutions and establish the method of improvement of the internal control,with a view to help and improve enterprise A in a healthy and orderly way in the future.