Research On The Internal Control Environment Of Huangpu Customs Based On The COSO Framework

COSO framework is widely recognized and accepted in the world.It is built on the basis of risk management,including five elements: control environment,risk analysis,control activities,information and communication,and monitoring.The control environment determines the tone of the organization,affects the control consciousness of the people in the organization.It is the basis of internal control.In order to establish the internal control mechanism and ensure its effective operation,the control environment should be optimized first.The Customs of the People's Republic of China shall be the state organ responsible for supervision and control over everything entering and leaving the Customs territory.How to prevent and control the risk of law enforcement and corruption,standardize the operation of power and improve the management of Customs has always been a major issue for China's customs.Huangpu Customs is located in the Pearl River Delta region,whose business basics is relatively weak,the external law enforcement environment is complex,and the risk of law enforcement and the risk of corruption are high.Since 2004,according to the unified deployment of the General Administration of Customs,Huangpu Customs has actively explored effective ways of implementing the internal control of the regional Customs.Although some achievements have been gained,there are still a lot of problems in the control environment.For example,there is no mature internal control culture;The senior management is keen on internal control,while the response at the grass-roots level is cold;The organization ignores the factors of "human" in internal control and so on.Firstly,this paper defines the analytical framework of customs control environment on the basis of the new COSO framework.Secondly,this paper introduces the development of Huangpu Customs internal control mechanism,expounds the current situation of Huangpu Customs internal control environment.Thirdly,this paper analyzes the problems in the internal control environment of Huangpu Customs from the following four aspects: internal control culture,organizational structure & distribution of authorities and responsibilities,education and training,incentive mechanism.Then,this paper combs the experience andenlightenment of building internal control environment in the Dutch Tax and Customs Administration,such as internal control mechanism,integrity management,education and training mechanism.Finally,the paper puts forward some countermeasures and suggestions to optimize the internal control environment of Huangpu Customs.The research in this paper will help to improve the internal control environment of Huangpu Customs,so as to improve the effectiveness of the internal control mechanism of the customs.It is of great theoretical and practical significance to strengthen the system of restriction and supervision of the operation of customs power and to prevent the risk of law enforcement,the risk of management and the risk to clean government.