A Study On A Real Estate Enterprise Internal Control

Internal control is implemented by the company's board of directors,the board of supervisors,the management team and other employees.It aims to provide reasonable assurance for the company to improve operational effect and efficiency,to ensure the reliability of financial statements,to ensure the compliance of relevant laws and regulations.In order to achieve the effectiveness of internal control,five elements needed to support,which is “internal environment,risk assessment,control activities,information and communication and supervision”.Internal control is a key area of concern for business management theory and practice.Establishing and improving internal control system is vital importance to the sustainable and healthy development of industrial enterprises.Company A is a well-known Small and Medium Enterprise Board listed real estate company,mainly engaged in real estate development,planning and marketing.In recent years,with the intensification of market competition and the fall of the real estate market,the external uncertainties are gradually increasing,and there are some problems in the internal control of enterprises,which leads to many problems in internal control management and risk management.It is urgent to establish a suitable company.The internal control system for operational development.This study takes Company A as an example,based on risk management theory,principal-agent theory and information asymmetry theory.Firstly,the reality of internal control of Company A is introduced from the aspects of environmental control,risk assessment,control activities,information exchange and internal supervision.Through the situation analysis,there are many problems have been found,such as: poor control environment,inadequate risk assessment,inadequate control system,and poor communication of information.Afterwards,we have a deep analysis of the causes of the problems.The reasons for the problems include: irregular governance structure,insufficient awareness of risk management,untimely improvement of control system,limited communication channels,and lack of internal audit institutions.Finally,based on the principles of comprehensiveness,importance,balance,adaptability and cost-effectiveness.From the aspects of internal control environment,internal risk assessment,internal control activities,information communication channels and internal audit institutions,the specific plan for the internal control improvement of Company A is proposed.In the meantime,put forward safeguards to ensure the implementation of the plan.I hope that it will further improve the internal control effect of Company A,improve its operational efficiency and quality.