Research On Internal Control Of Internet Company

With the rapid development of China’s Internet industry,"Internet +" policy has been implemented in many areas.This has brought important opportunities such as consumer upgrades,but also faces many challenges.Internet industry is an emerging industry,it has diverse business model,low maturity and different product line operating mode.Therefore,the risk of Internet companies is more dispersed,more difficult to control.Internet business model changes frequently,which determines their organizational structure and business model needs to be adjusted,leads to the process-based internal control system management left behind the actual business operation,making the internal control become the bottleneck restricting the promotion of Internet enterprise management.Therefore,this paper aims at the internal control of Internet companies to study.This paper regards the evolution of internal control theory as a starting point.On the basis of domestic and foreign research results of internal control and the characteristics of Internet enterprises,this paper uses case studies and inductive analysis methods to compare and analyze two typical cases——LETV and Fujian Star-Net Communication Co.,Ltd..Then this paper puts forward a five-goal system of internal control,which takes the strategic target as the banner and the overall budget as the important means.This article first introduces the internal control and the Internet enterprise related theory and clarifies the research theoretical basis and the research content,then puts forward the necessity of constructing a five-goals system.Secondly,starting from the five objectives of internal control,this paper analyzes the internal control risks of Internet enterprises at each target level,points out the risk characteristics of internal control of Internet enterprises,and analyzes the status of Internet companies.Thirdly,the paper studies the internal control of two Internet companies,focusing on the rapid development of internal control of Internet enterprises under high risk.The conclusion is that the strategy is the flag and the comprehensive budget is the important means.It is necessary to combine the two together and establish a five-goal system of internal control,which takes the corporate strategy as the guidance and the overall budget management as the important means.At last,the paper puts forward the corresponding risk control strategy for the five internal control system.From the strategic level and the overall situation,this article summarizes the design ideas and strategies of the Internet enterprise internal control framework.This paper provides reference for the fast developing internet enterprises to construct,optimize and improve the internal control system.At the end of the article,the author makes a brief review and summary of the full text.The main contribution of this paper is that it has enriched the literature of internal management t risk of Internet industry and deepened the application research of internal control in Internet enterprises.Moreover,this paper provides reference for the growing and developing Chinese Internet giants on the establishment and perfection of the internal control system,the formulation of the strategic target,and the regulation of the internal control system and the risk aversion of the internet.