Research On Internal Control Of Local State-owned Construction Company CDJG Group

The improvement of the internal control system is of vital importance to the survival and healthy development in the competitive market.As a system to control complexity,its own application is regulated by policy compliance and restricted by the conditions of the enterprise itself.How to build and further develop the internal control system based on local conditions and reality should be mainly discussed in this paper.The construction industry is an old and ever-evolving industry.With the development of society,the processes of construction production are more complex and influenced by increasing more factors thus putting the enterprise in the industry with much more challenges in management.In the past 20 years,the construction industry has been one of the pillar industries of the national production.However,with the adjustment of the economic structure under the new normal,the enterprises in the industry are facing the dual pressure of production transformation and upgrading intensified market competition.On the macro level,the "“the Belt and Road " initiative and the "go out" call for opportunities are right in front of us,but they require companies to have the talent pool of overseas knowledge background.Enterprises adopt new financing methods such as PPP and enterprise asset securitization step by step,so as to advance high requirements for business managers to keep learning and innovating;traditional extens ive production methods in the past have been impacted by cloud computing,big data and building information model(BIM),so that the information technology can reshape the production process,and correspondingly,the control means will also change;With the gradual implementation of new economic models such as smart cities and block chains,the value of engineering products has been constantly redefined and re-assessed,so that the enterprises can transform from the builders to the asset managers.The above new situations make it urgent for construction enterprises to seek new management breakthroughs and,to achieve the following objectives: ensure the enterprise management in accordance with legal and compliance,enterprise asset safety,complete and authentic financial report and related information of enterprise,and improved operational efficiency and effectiveness,thus leading enterprise to realize the goal of the development strategy.The state-owned enterprises in the construction industry,especially municipal ones,are not only the participants in the completely competitive market,but also the firm practitioner of the national policy.Due to historical reasons,such enterprises are burdened with too many social responsibilities,some of which are in a situation there is no clear distinction between enterprises management and public institution administration,and lack standardized management of modern enterprise systems.Under the background of state-owned enterprise reforms,this research has important practical significance to the problems in the internal control of such enterprises for its theoretical analysis and case study.This paper uses the internal control system of CDJG Group Co.,Ltd as an object.Based on the current economic situation,national policy,industry status,regulatory requirements,enterprise development and existing strategies,this paper has carried out a theoretical analysis.Combined with theoretical analysis results and the actual work experience,this paper has done a d iagnostic study on enterprises: it summed up the typical problems and the their causes that CDJG Group often encounters in all the aspects of management and analyzes how each department of CDJG group management level uses the internal control system to solve the related problem and further optimize the process.Furthermore,this essay focuses on the new problem in the development of CDJG enterprise,one is the effect of the new No.14 Accounting Principle of Enterprise--Income implemented on January 1st,2018 for the relevant items of financial report,another one is the instructive significance of new COSO enterprise risk management frame for the enterprise risk management work,making the attempt and reference for management innovation.It needs to be mentioned that the research of this paper is not necessarily of promotional value to similar enterprises in the construction industry.The reasons are as follows: firstly,this paper starts from the existing internal control construction of CDJG;Secondly,this paper is limited by the author’s theoretical level and professional experience;Thirdly,the internal and external environment and governance level of different enterprises are different,which may lead to,and different application of internal control system.