Analysis On The Effectiveness Of Internal Control Of Private Enterprises In China

With the development of China's economy,more and more private enterprises have emerged as the times require,which has greatly promoted the development of China's economy.With the gradual expansion of enterprises,many private enterprises have chosen to go public because of the characteristics of private enterprises.It has decided on its financing channels,and it can help private enterprises to better obtain capital through listing.Although China is strengthening the governance of capital markets,with the increasing number of private listed companies,cases of financial fraud and accounting fraud frequently occur,disrupting the rules and order of the market,and seriously undermining investors' confidence in the capital market.Most of these problems are caused by the lack or ineffectiveness of internal control in China's private listed companies.Therefore,for private enterprises in China,how to evaluate the effectiveness of internal control has become an urgent need.With the continuous improvement and development of the internal control system,the objectives of internal control are determined into five objectives,namely,asset security objectives,compliance objectives,financial reporting objectives,business objectives,and strategic objectives.The establishment of an effective internal control system is to ensure the realization of the above five goals.Based on the realization of the five goals of internal control,this paper constructs the evaluation index system,uses the analytic hierarchy process to stratify the indicators,uses the G1 method to determine the weights for each index,and uses the efficiency coefficient method to comprehensively score the indicators,and internally Control the existing problems for specific analysis.This paper consists of six parts.The first part is the introduction.It mainly expounds the research background,research significance,development of internal control at home and abroad and the evaluation of internal control effectiveness.The research contents and methods of this thesis are explained.The second part is the definition of internal control theory and the concept of private enterprise.Firstly,it expounds the related theories of internal control and the theory of internal control evaluation,and then explains the definition of relevant concepts and the status of internal control of private enterprises.The third part is the status of Y company and the status quo of internal control.It expounds the general situation of Y enterprise,the current situation of Y industry,the development history of Y enterprise and the status quo of internal control.The fourth part is the evaluation and analysis of the effectiveness of internal control of Y enterprise.This part mainly uses the analytic hierarchy process to make the five major goals of internal control as the first-level indicator layer,and then establish several secondary indicators according to each level of the indicator layer.The establishment of the indicators in this paper is based on the characteristics of Y enterprise real estate to add some improved indicators that are more in line with the characteristics of real estate enterprises.This paper has established 18 secondary indicators,and then uses the G1 method based on the results of experts and scholars respectively.The weights are determined for each index.Finally,the power factor method is used to select the maximum and minimum indicators of the industry in which Y is located to score the second-level indicators.Finally,the index weights of each level are combined with the index scores to obtain effective internal control of Y enterprises.Sexual evaluation results.The fifth part is the problems and improvement suggestions of Y internal control activities.Through the internal control effectiveness evaluation,the scores of each index and the evaluation results,find out the current problems of Y enterprise internal control,and then put forward some suggestions for improvement of Y enterprise internal control..The sixth part of the research conclusions and prospects,summarize the research results of this paper,and make future research prospects for the effectiveness evaluation of internal control.