Case Study On Internal Control Of FESCO Investment Business

The current decade is a decade of economic change.The “One Belt,One Road” policy is bringing new opportunities and challenges to the Chinese economy,and it also brings new business ideas to Chinese companies.Enterprises are looking for new profit points and development.In the exploration of emerging markets,investment activities will become a new choice full of opportunities and crises.The risk of investment business runs through all stages of investment activities.From feasibility analysis,risk approval,project review to control evaluation and risk response in the implementation phase,there are industry-specific variability and uncontrollability at each stage,if internal Control activities cannot detect potential and impending risks in a timely manner,which may result in losses in investment projects and even lead to investment failure.Therefore,enterprises establish a scientific and effective internal control management system for investment activities,timely discover investment risks and avoid investment losses,which is the only way for enterprises to carry out investment activities.The WQ service company selected in this paper belongs to the municipal state-owned enterprise.However,there are still many shortcomings in the construction of the internal control management system for investment activities.In recent years,investment projects have suffered successive losses.This paper elaborates on the investment business of WQ service company.The first part is the introduction,which mainly expounds the research background and significance,research content and research methods of the thesis.The second part mainly expounds the overview of WQ service company and WQ service company investment.The status quo and case introduction of business internal control;the third part mainly carried out case analysis,including the theoretical basis of internal control of investment business,the problems of internal control of WQ service company's investment business and the analysis of the reasons for the internal control of WQ service company's investment business.The main problems in the internal control of investment activities of WQ service companies are: investment projects failing to report and approve according to regulations,investment risk analysis reports are too brief,internal control evaluation grades are incorrectly classified,and the company and the invested parties are not communicating in time.The reasons are: the blind spot of control in the internal control program of investment business,the weak ability of internal control of investment activities to identify risks,the lack of internal control supervision and the imperfect investment information feedback mechanism;the fourth part elaborates the countermeasures and suggestions for the above problems: optimizing the internal investment business Control procedures,improve the risk management system for investment business,strengthen the effectiveness of internal control oversight of investment activities,and improve the collection and feedback mechanism of investment information.