Research On The Effectiveness Evaluation Of Internal Control Of W Company Based On COSO-ERM Framework

The real estate industry is widely concerned by the public in China and is a vital pillar of the national economy.As our economy has been on the rise,it has opened up countless possibilities for the industry,yet has also posed numerous difficulties.As real estate companies are deeply affected by policies,the risks in the real estate industry will increase as policies are accelerated.In the face of the risks arising from macroeconomic regulation and changes in the market economic environment,real estate companies need to build a sound internal control system to ensure the effectiveness of their operations.However,the extensive and complex nature of financial information in real estate companies makes it difficult to communicate information and implement internal control systems in real estate.Therefore,the company should consider the level of internal control management as a whole,build a set of internal control evaluation system in line with its own development,and quickly identify and improve the problems in the internal management of the company.The case company selected for this paper is W Company,the most representative force in the real estate industry,with residential development and property services as its main business.Firstly,this paper summarises the research status of three aspects of internal control system,internal control effectiveness and effectiveness evaluation system at home and abroad by collating relevant literature.Then,the theories related to internal control are introduced and the COSO-ERM(2017)framework is used as the index system for the evaluation of internal control of Company W.The weights of its indexes are calculated through the hierarchical analysis method and the fuzzy comprehensive evaluation method is applied to calculate the scores of each evaluation index.Finally,the evaluation results were used to analyse in detail the problems and causes of the internal control of Company W,and to propose suggestions for improvement of the unreasonable internal control settings of Company W.The study shows that although the level of effectiveness of internal control of Company W is medium,many aspects are still unreasonable and need to be further improved and optimised;(2)A thorough examination of the assessment outcomes of Company W’s internal control’s efficacy was conducted.it is concluded that the element of "information,communication and reporting" has the lowest score,which indicates that the company has a poor understanding of the quality of information disclosed to the outside world.(3)Company W should further improve its internal control system and enhance the effectiveness of internal control based on the analysis of the results and countermeasures in this paper,so as to enhance the company’s ability to cope with risks and contribute to its sustainable and healthy development.