Study On Internal Control Optimization Of B Automobile Group

With the booming of China’s economy,China’s auto industry has also developed rapidly.Since 2009,China has consistently ranked first in global auto production and sales.At the same time,the growth of vehicle ownership has also brought a series of social problems,especially from the background of the world’s environmental protection and carbon neutrality and the pressure to maintain China’s energy security,the future development of China’s auto industry has faced new challenges.Considering China vigorous promotion of the new energy vehicle industry,it is necessary to study the internal control of the emerging domestic new energy vehicle companies.China’s supervision department issued “Guidelines for Comprehensive Risk Management of Central Enterprises” and “Basic Norms of Enterprise’s Internal Control”in 2006 and 2008,respectively,which guide enterprises to carry out the comprehensive risk management system construction in China.However,in the process of system construction,many enterprises failed to insight into the overall risk management theory and practice significance.COSO Committee,the global authority on total risk management,updated the integration of Enterprise Risk Management with Strategy and Performancein September 2017,referred to as: COSO-ERM（2017）framework,which endows risk management with the concept and connotation of cross-era,points out the main body,guides the direction and provides ideas for the comprehensive risk management work of enterprises nationwide,and breaks through the limitations of the original framework with natural advancement.However,the COSO-ERM（2017）framework is naturally advanced,but due to its short time of release,it needs to be tested for practicality by enterprise practice.Based on the above,this paper chose Automobile Group B to conduct research on internal control issues under the framework of COSO-ERM（2017）.It adopted novel ideas and showed certain innovation spirit in the topic selection.On the basis of relevant risk control theories,the internal control of Company B was studied from the perspective of COSO-ERM（2017）.By means of literature research,questionnaire survey and interview,Company B’s risk management status quo has been explored,from internal control structure,participation of the management,risk control strategy,business activity control,quality management and quality authorization control,and the establishment of information disclosure and communication channels,etc.It is found out that problems exist in this company,such as weak awareness of risk management and lack of governance institutions;Lack of operational guidelines for risk identification and prevention;Lack of risk assessment and performance evaluation system;Internal monitoring and optimization of design defects;Lack of technical support for information communication and reporting.This paper first described the basic internal control theories used in the study,introduced the definition of risk management and internal control and then presented the background and content of the latest COSO-ERM framework.Then it analyzed Company B’s risk management situation.It initialed with a brief presentation of automobile industry,Company B and its management structure.Then by means of questionnaires,it collected and identified the strategic,financial,marketing,technical and operational risks of company’s internal control.In the meantime,it investigated the causes of problems,for example,internal control environmental defects,lack of risk identification procedures,unscientific design of control activities,obstructed communication in internal control procedures and inadequate internal supervision activities.Finally,it proposed an optimization solution in response to existing internal control problems of Company B,including the construction of a risk management system designed based on the latest COSO framework and management suggestions for specific business modules.Risk management system includes five dimensions: optimizing "governance and culture" environment,setting reasonable strategic objectives,optimizing "implementation" management activities,optimizing evaluation system and improving information,communication and report content.Key business modules mainly include budget management,capital and financing investment activities,information system,research and development management,production and quality management,procurement management and so on.