Internal Control Of China Railway XM Engineering Company

Chinese construction companies have experienced profound changes in domestic market.Traditional state-run management style is unable to meet the demand of modern market any more,which forces state-owned large and medium sized construction companies to transform into innovative and managerial enterprises.The need of survival and development not only depends on constant innovation of technology,system and management,but also strengthens the process control to maintain healthy development and enhancement of market competitiveness.However,businesses being made up of many separating projects,construction companies are different from the intensive and continuous operational manufacturers and are more difficult in management.This thesis aims to establish the internal control mechanism suitable for large and medium sized construction companies in China.Based on related theoretical research of internal control,this thesis adopts case study as research method to analyze deeply properties and features of construction industry in China.Taking state-owned company China Railway X Engineering Company(CRCC)for example,this study finds out five existing problems of internal control in construction companies,such as "unreasonable governance structure".According to the analyzed literatures and related theories about internal control,the research produces a functional internal control system and an engineering project management system separately within a construction company.For the purpose of developing a sound internal control system,combining the practices of China Railway X Company and the ideas and concepts of COSO framework,an integration system is put forward to replace functional internal control system,and the engineering project management is standardized and integrated into "Control Activities".Finally,the dissertation expounds the specific measures of new internal control model of China Railway X Company,and demonstrates good effects of model implementation through the operating performance.The research conclusions of this dissertation hopes to help reduce the operational risks of construction enterprise and improve their economic benefits,help them continue to grow stronger,and a useful reference to enter into international market.