Study On Internal Control Audit Of State-owned Enterprises

From 2002 when U.S.Congress issued the Sarbanes-Oxley Act requiring Certified Public Accountants to carry audit of internal control over the company’s financial report,to 2007 when PCAOB issued Auditing Standard No.5 which made specific provisions of the audit of internal control over financial reporting,United States has established a relatively sophisticated system of internal control audit.While China didn’t release Enterprise Internal Control Supporting Guidelines and establish internal control audit system until 2010.Since our internal control audit system just started without being fully implemented,it is necessary to make a study of the internal control audit.As the backbone of the national economy,Chinese state-owned enterprises play a crucial role in the development of the national economy.The study of the internal control audit of state-owned enterprises is of great practical significance.This paper starts from the basic theory and present situation both home and abroad of the internal control audit and then expounds the implementation of the basic theory and work in detail by state-owned enterprises in China,finally comes up with proposals for existing problems.These problems are studied and discussed with research methods including mainly normative research while case studies as a subsidiary,together with inductive analysis comparative analysis,flow chart analysis and so on.This paper introduces the background,current research achievement,research contents and methods both home and abroad in the first part.On this basis,the second part introduces the state-owned enterprises and the basic theory of the internal control audit and accordingly the implications of internal control audit of state-owned enterprises.The third part introduces the specific implementation of internal control audit and clarifies the premises,contents,methods and conclusions of internal control audit of state-owned enterprises.The fourth part analyzes the existing problems in the internal control audit,and put forward seven proposals.Finally,it draws the conclusion.I hope that this paper can provide useful advice for the Certified Public Accountants to implement the internal control audit of the state-owned enterprises and to try to carry out internal control audit in China.