Research On The Optimization Of Financial Internal Control Of Y Family Business Based On The COSO Framework

With the development of global economy and the deepening of reform and opening up policy,China’s economic strength has been greatly enhanced.As the most common form of economic organization,family business plays a great role in promoting the development of China’s economy.However,the financial internal control of family businesses is generally loose,which is determined by the characteristics of family businesses,such as the corporate culture characterized by strong power and differential order,and complicated personnel relations.Because of historical reasons,China’s family business starts late and financial internal control is weaker.As a result,a scientific financial internal control system is urgently needed to help family business out of the predicament and achieve its strategic goal of sustainable development.In this paper,the author analyzes the current situation of Y-family business’ s financial internal control,summarizes its problems and causes from the perspective of the business’ s financial internal control,based on the COSO internal control framework and consider with the inherent characteristics of family business.Then it puts forward a scheme to optimizing the Y-family business’ s financial internal control,such as establishing an open company culture,perfecting the financial internal control risk evaluation system,optimizing the financial internal control design in business,establishing an effective information and communication platform,strengthening the supervision and management of financial internal control,etc.Finally in order to guarantee the effective implementation of the scheme,relevant safeguard measures are put forward.Good financial internal control is very important for the development of family business.This paper proposes a feasible plan for optimizing the financial internal control of family enterprises,which has certain reference for other family businesses.At the same time,this paper proposes a new entry point and practicality for the research of financial internal control of family business.