Research On Optimization Of A Construction Company’s Internal Financial Control Based On COSO Framework

Nowadays,with the development of social economy,the industry competition is becoming more and more fierce.If enterprises want to enhance their competitive advantages in this big situation,they must strengthen the internal management control.In the enterprise internal management control,internal financial control is a key part,reasonable and effective internal financial control is conducive to the realization of higher quality and efficient financial management,and then promote the improvement of enterprise management level,which not only meets the actual needs of enterprise modern management,but also has great significance for enterprises to achieve sustainable development.A construction company is an enterprise whose main business is construction.In recent years,with the gradual expansion of the company and the accelerating pace of development,the original internal financial control mechanism of the company has been unable to meet the needs of current development,and the problems existing in the construction and execution process have become more and more obvious.Therefore,if enterprises want to improve their own management level,it is urgent to optimize and perfect the current internal financial control system.As a state-owned enterprise transformed into a private construction enterprise,A company has many problems and areas to be optimized in terms of internal financial control.Need to be further improved and perfected.In this paper,construction company A is selected as the case company,through on-the-spot investigation of the present situation of the company’s internal financial control,combining the five elements of the internal financial control,the existing problems and causes of its internal financial control are analyzed,and suggestions for optimization are put forward accordingly.Through the questionnaire survey,the current problems of A construction company in the internal financial control are weak internal control environment,weak financial risk prevention ability,poor internal and external information communication,poor execution of financial control activities,and lack of internal supervision and audit.The reason for the above problems is that the company’s organizational structure is not perfect,the awareness of risk prevention is not strong,the internal control system is not perfect,the comprehensive quality of financial personnel is not high,the supervision and audit mechanism is not reasonable.Based on these problems,from the perspective of the five elements of internal financial control,this paper puts forward the optimization path of the internal financial control of A construction company,such as improving the internal financial control environment,strengthening the construction of internal control activities,optimizing the information and communication system,improving the financial risk prevention mechanism,and improving the internal supervision and inspection mechanism.At the same time,in view of the effective implementation of the optimization path,it puts forward the guarantee measures from three aspects: technical guarantee,system guarantee and personnel guarantee.Through A construction company the internal financial control targeted research,hopes that can provide reference suggestions of its internal financial control for the optimization path and safeguard measures,improve the effectiveness of internal financial control,enhance the enterprise’s own risk disposal ability,and create more economic benefits for the enterprise.At the same time,it can also provide reference for the internal financial control construction of similar enterprises.