Research On Optimizing Internal Control Of S Family Enterprises Based On Coso Framework

Family business is a common form of economic organization that plays a certain role in promoting China's economic development.Due to their special nature,family businesses generally have kinship relationships among executives,which leads to some confusion in the management process of the company,and the organization of the enterprise is not perfect.Strengthening the internal control and management of family businesses is very important and helps to help family businesses to operate more regulated.Family enterprises have many problems in the internal management process.Family members participate in the process of business management,the powers and responsibilities are unclear,the personnel relationship is more complicated,the company's decision-making ability is weak,and the multi-management phenomenon leads to chaos in the company,which directly affects The business situation of the family business.If family businesses want to be able to change this problem,they need to pay attention to the internal control problems of enterprises,adopt advanced internal enterprise control and management methods,find out the problems existing in the internal control process of family enterprises,analyze their causes,and improve internal control plans to promote The continued development of family businesses.The COSO framework is a guiding method within the enterprise.It is mainly composed of five elements: control environment,risk assessment,internal control activities,information and communication,and supervision.It uses dynamic means to control and manage the internals of the enterprise.In the writing process,this paper mainly takes the S family enterprise as an example,and takes the COSO framework as the main theoretical basis to explore the internal control scheme of the S family enterprise.This paper adopts research methods such as literature research method,field investigation method and case study method.The main research contents include the following aspects:First,the introduction and analysis of COSO theoretical basis and related concepts of internal control provide theoretical basis for the writing of the thesis.Secondly,the investigation and research on the internal control status of S family enterprises,from internal control environment,risk control,internal control activities,information Five aspects of communication and internal supervision analyze the internal control of S family enterprises;Thirdly,it summarizes the problems existing in the internal control process of S family enterprises,and believes that the problems mainly include five aspects.First,the internal environment of the S family is poor,the corporate governance rights and responsibilities are unclear,and second,the risk assessment is missing.It is impossible to effectively avoid the risk of regulation;thirdly,the control activities are not standardized,and the business management is rather confusing;Fourth,according to the problems existing in the internal control of S family enterprises,combined with the characteristics of family enterprises,the internal control optimization program is formulated to regulate the internal control of family enterprises and improve the internal control level of family enterprises.Finally,this paper suggests that the S family should be optimized from the following five aspects in the internal control process:First,optimize the internal control environment,adjust the organizational structure of family businesses,clarify the distribution of powers and responsibilities,establish incentive mechanisms,and provide a good environment for the internal control of family businesses;Second,improve the internal risk assessment mechanism of the enterprise,clarify the risk management department,accurately identify risks,and formulate risk prevention plans;Third,standardize internal control activities of enterprises and optimize internal control processes;Fourth,improve information communication mechanisms,build information communication systems,and implement information disclosure policies;Fifth,improve the internal control and supervision of enterprises,design internal audit departments,and strengthen internal supervision and management of enterprises.From the perspective of the COSO framework,help S-family companies to develop internal control programs to standardize the management model and governance model of S-family businesses and promote the stable development of S-family enterprises.