Research On The Evaluation Of The Effectiveness Of Corporate Internal Control Activities Under The Financial Shared Services Model

With the global integration of the economy and the rapid development of modern science and technology,the size of enterprises is constantly increasing and their organizational forms,management practices and control content have changed significantly.More and more companies have accepted the creation of a shared financial service center as an IT-based management tool that can standardize processes,improve efficiency,optimize organizational structures and reduce operating costs.Existing studies on financial services shared services centers have focused on the process of creating a financial services shared services center,but there is still a lack of information on the impact of creating a financial services shared services center,especially studies on internal control need to be further investigated.In the case of internal control,control activities are an external manifestation of internal control.Therefore,studies should focus on the impact of a financial services shared services center on the effectiveness of the company’s control activities.This paper takes Company Y,which has implemented a financial shared services center,as a case study and examines the effectiveness of internal controls in depth.Based on the understanding of the shared financial services model and the effectiveness of internal control,an evaluation index system based on process reengineering theory,economies of scale theory and optimal control theory is established using the business dimension of Company Y.The results are presented in the paper.The hierarchical analysis method and the holistic fuzzy evaluation method are used to obtain relevant data to evaluate the control performance through a questionnaire,and the effectiveness of internal control under the common financial service model of Company Y is evaluated.An in-depth analysis of the control activities of the actual operations of Company Y and an analysis of their effectiveness identified the weaknesses of internal control and finally proposed targeted methods to improve the effectiveness of internal control.The research presented in this article adds to the theoretical foundation for companies to use shared financial services centers to increase the efficiency of their control activities,and provides significant benchmark value for other companies in the industry to implement shared financial services centers.