Research On The Effectiveness Of Internal Control In N Family Enterprises

In recent years,China’s family enterprises have developed rapidly,accounting for an important proportion of China’s total economic output,and become an important driving force for China’s economic development.However,in the face of increasingly severe market environment,enterprises are also facing increasing risks.Family enterprises have their own unique characteristics that are different from ordinary enterprises.The internal managers often have more or less kinship,and the internal organizational system and business structure of enterprises are often not sound.With the continuous expansion of its own business scale,the increasing size of its employees and the frequent occurrence of internal problems in family enterprises,the future development of family enterprises is facing many challenges.Studying the internal control of family enterprises and improving the internal control plan of family enterprises will play an important role in enriching and improving the relevant theories of internal control of family enterprises and promoting the growth of family enterprises.This paper takes N Company as the study case object.First of all,the main concepts of the study,the effectiveness of family business and internal control are described respectively.Secondly,it summarizes the characteristics of family business and introduces the theories used in this paper,which are family governance theory,information asymmetry and management cybernetics.Through the above introduction,clear the theoretical basis of the study of the article,and then on the basis of the theory of the above article,the study of the case company for a detailed analysis.Based on the analytic Hierarchy process(AHP),a detailed three-level index system is constructed in combination with the Guidelines for Evaluation of Enterprise Internal Control and related internal control theories and norms.Then,fuzzy comprehensive evaluation method is used to conduct comprehensive evaluation of N Company’s internal control.Through the direct comparison of scores,the problems existing in the internal control of N family enterprises are analyzed.Finally,specific reasons are analyzed for the five basic internal control elements of N company,including internal environment,risk assessment,control activities,information communication and internal supervision,and suggestions for improvement are put forward.Through research,this paper finds that the main problems existing in the internal control of family enterprises are the management chaos caused by the separation of family and enterprise,and the interweaving of personal interests and enterprise interests.Therefore,it is necessary to clarify the relationship between family and enterprise,transform the rule of man into institutional governance to improve the governance basis of family enterprises and optimize the internal control activities of enterprises.Through a complete introduction of the internal control status quo of N family enterprises,this paper seeks for problems related to internal control of N family enterprises and proposes countermeasures,hoping to help the management of N family enterprises improve their own risk awareness and risk management level,help N family enterprises optimize and improve their internal control system,improve their competitiveness,and provide references for the internal control governance of related family enterprises.Secondly,this paper takes family business as the main research object.By helping family business to improve its internal control and governance standards,it can create favorable conditions for the supervision of regulatory agencies,improve the efficiency of supervision,and promote the smooth and orderly operation of our economy.