Research On The Effectiveness Of Internal Control Of FAW Car

In recent years,financial fraud cases caused by the failure of internal control of enterprises have occurred frequently,and most of these cases are caused by imperfect internal control of enterprises.Therefore,how to improve the internal control system of enterprises has become the key to exploring long-term stable development of enterprises.Although the current international and domestic laws and regulations on internal control of enterprises have clearly imposed requirements on how to effectively implement internal control,internal control has not attracted much attention in most enterprises.On October 18,2017,General Secretary Xi Jinping pointed out in the report of the 19 th National Congress that deepening the supply-side structural reform and clearly pointed out that the fundamental goal of deepening the supply-side structural reform is to improve the overall productivity of the society,and at the same time implement People-centered thinking.In response to the supply-side reform,the automotive industry should bear the brunt of the task of de-capacity.Therefore,FAW Car as one of the leading companies in China’s auto industry,has to develop a set of perfect and suitable enterprises for itself if the internal control system has not attracted widespread attention in the world.The internal control system,which is also a key step in theresponse to the structural reform of the supply side of the country.How to judge whether the internal control system of the enterprise is perfect and effective? The most critical method is to evaluate the effectiveness of the internal control system of the enterprise.The scientific and reasonable internal control effectiveness evaluation system can reveal the shortcomings and defects in the internal control system of the enterprise,so that the enterprise can develop stably in a long-term,enter a virtuous circle,be healthy and orderly development.In this paper,the five elements and 17 basic principles of the COSO2013 framework are used as evaluation indicators.The analytic hierarchy process is used to assign weights.The fuzzy comprehensive evaluation method is used to conduct qualitative evaluation,and then key financial indicators are selected for weight assignment.In the end,the results of qualitative analysis and quantitative analysis are comprehensively evaluated.Based on this,the effectiveness of FAW Car’s internal control is evaluated and analyzed,and the reference value is provided for other enterprises of the same type.Through the research of this paper,the following conclusions are drawn: The evaluation of the internal control effectiveness of FAW Car by qualitative and quantitative combination method is consistent with the type of internal control audit opinion issued by the previous firm,which shows the internal of the enterprise.The control system has defects,and it also shows that the internal control effectiveness evaluation systemconstructed in this paper is scientific and effective,and it is feasible.At the end of this paper,the specific improvement measures are proposed based on the defects of FAW Car internal control.