Study On The Internal Control System Of W Family Company

Since the reform and opening up,a large number of family enterprises in China have developed rapidly and made great achievements,which reflects the institutional advantages of the organizational form of family enteprises.However,the average life span of domestic family enterprises is short,which is mainly due to the problems of internal control system..Therefore,how to optimize the internal control system of the family business has become the key to the long-term competitiveness of the family business.Based on the theory of enterprise internal control system,taking W company as a specific case,this paper analyzes and studies the internal control system of family businesses.This paper first clarifies the meaning and characteristics of the control system,and then from the perspective of the enterprise life cycle,based on the COSO internal control integration framework,deeply analyzes the current status of internal conctrol in W company which is a family enterprise.And summarizes the existing problems of W company's internal control system and its causes,and finally,this paper suggests that family businesses should improve the internal control environment,establish and improve the risk assessment system,improve the internal control design of business activities,achieve effective information transmission and communication mechanism,and strengthen internal supervision and management..