Research On The Internal Control Of RC Charity

The operating capital of an enterprise mainly comes from the investment of shareholders.Shareholders have the right to control the enterprise.Shareholders will pay close attention to corporate behavior to protect their own interests.The enterprise must strengthen its internal control because it is constrained by the market system and shareholders.Different from enterprises,the main economic source of RC charities is the donations of the masses,and the masses do not have control over RC charities.Therefore,the concern of RC charities is not high,only the flow of their donations.This had led to numerous public welfare scandals,even more during the COVID-19 period.It can be seen that in order to improve this situation and prevent the decline of its social credibility,RC charities should pay more attention to self-discipline and strengthen the perfection of internal control.So this article has launched a specific research on the internal control of RC charities.Based on the theory of COSO framework,this paper used the methods of literature analysis,case study and normative research,and took RC charity as the research object to carry out in-depth discussion and Research on its internal control.First of all,this paper described the current situation of its internal control by introducing the development,operation,organizational structure,internal control system and internal control process of RC charity.Then it found that there are some problems in its internal control,such as insufficient vertical control,poor budgeting effect,incomplete charity material control mechanism,low transparency of donation information and weak supervision and management.After that it analyzed the causes of the problems from five aspects: internal control environment,risk assessment and response,control activities,information disclosure and communication,and supervision.Finally,combined with the current situation of RC charities,this paper put forward some targeted improvement suggestions,such as strengthening the construction of internal control environment,building a perfect risk assessment response system,strengthening internal control activities,establishing big data internal control system,and building an internal and external integrated supervision mechanism.Through a comprehensive and thorough analysis of the internal control of RC charities,combined with its own situation,the author gave corresponding solutions and suggestions,aiming to help RC charities improve their social credibility,establish a good social image,strengthen their self-restraint,provide new ideas for the improvement of their internal control,and promoted the development of the internal control of the whole charity industry effect.