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A Research for Internal Control of Railway-construction Enterprise

On 04/10/2014, in Management, by rain

Modern enterprises, in order to strengthen Management, improve Economic efficiency, protect the accuracy and reliability of financial information, protect security integrity of the assets to achieve corporate strategic objectives, are inseparable from the development and use of complete and effective internal control system. It is necessary to strengthen internal control, which ensures a sustainable and stable development of the Enterprise and makes sound impact to the success of the business. Thus, the internal control in the Management of modern Enterprise has taken an increasingly prominent role.During2008, the global financial crisis from the U.S has seriously blocked the development of the world Economics. Under the background of the worldwide recession, Chinese government announced an Investment plan with four trillion RMB to stimulate domestic demand, which includes railway as a quite large proportion and other major infrastructure, aiming to ease the impact on its economy. The advantage of railway concentrates in the field of area usage, energy saving and Environmental protection. There’s also an actual need to speed up its construction to build a green, sustainable and modern transportation system. So the railway-construction enterprises have never been in such great opportunities and challenges as the main force of railway construction. Currently, great setbacks are brought to these enterprises by the rough Management, the lower operational efficiencies, ubiquitous waste, and what’ s more, the increasingly fierce competition.In this paper, on the basis of the mature theory about internal control, it analyzes the current status of internal control and common problems in railway-construction enterprises. Set enterprise A as an example of railway construction, it analyzes key points of A’s main business and points out its main risks. Then the contents are focused on major methods for the internal control. After an overall assessment about these methods, in the end part, it concludes what a complete internal control should be, with more suggestions and policies.This paper includes five parts. The first part is the thesis research background, meaning, idea, framework and method; the second part states the internal control theories and applications of research review; the third part is the internal control present situation and common problem of railway-construction enterprise; the fourth part is a case study about the internal control of A railway-construction enterprise; the fifth part reveals the research findings and give recommendations about the internal control to railway-construction enterprise:emphasis on creation of corporate control environment; enhancing risk control, improve risk awareness among staff; gradual optimization of enterprise control activities, strengthening the functional management; establishment of effective e-communication platform; intensifying of internal audit.By research and study, the main contributions of this paper are:(1) The results and methods illustrated in this paper could be a reference and guide for the railway-construction enterprises, since previous study mostly concentrates in the field of finance and trade, but seldom discusses the internal control.(2) It analyzes the internal control policies for the railway-construction enterprises with five elements based on the COSO report, which avoids simple analysis about the problem from the business phase.(3) The contents set the enterprise A as an example to illustrate the operational status about the railway-construction corporations. At the same time, it provides a complete series of suggestions about what internal control of these companies should be.However, several deficiencies still exist in the paper:(1) Due to objective limitations, the research are only found on the enterprise A. Multi-objects would be better to illustrate the whole problem.(2) The paper are mainly focused on the analysis and study on internal control of risks and management for enterprise A’s core businesses. However, it seldom illustrates about how to build a set of effective systematic indexes for a railway-construction company, which is a good subject to be further studied afterwards. (3) There must be some defects in this paper. The main reason is that the author is less experienced in the knowledge about railway construction. Plus, there are only a few previous references to be studied. Please don’t save your any expertise and precious advice.

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Research on the Internal Control Disclosure in China’s Cross-listed Company

On 25/09/2013, in Management, by rain

<The Enterprise internal control supporting guidelines> was published on April6in2010,indicated that China has entered a mandatory disclosure stage of internal control information,The companies which listed on domestic and overseas at the same time will be first toimplement the guidelines from2012. In this context, this paper take China’s cross-listedcompanies as the research object, in order to understand the internal control informationdisclosure status of these companies, so as to provide policy recommendations forimplementing the guidelines effectively.Firstly, the paper chooses all the A-H cross-listed companies in our country from2008to2010as study samples, then designs classification standards with referencing the <supportingguidelines> to do statistical analysis on the disclosure status of internal control information,summarizes the main problems. Secondly, analyses the influencing factors of internal controlsignificant deficiencies disclosure by using descriptive method, and analyses the influencingfactors of audit report on internal control disclosure by using the multiple linear regressionmethod. The results show, the self-assessment reports of internal control don’t disclosedregularly on location, content and format; the significant deficiencies disclosure of internalcontrol is not enough; the proportion of the internal control audit report disclosure is low, andthe assurance level doesn’t meet the requirements. The significant deficiencies disclosure ofinternal control is connected with severe punishment and whether listed in the United States;audit report on internal control disclosure has the positive correlation with firm size、profitability、ownership concentration, and has the negative correlation with the rate of assetsand liabilities、whether hire the big four accounting firms.According to the conclusion, the paper puts forward five policy suggestions: regulatingthe behavior of internal control information disclosure, improve the disclosure quality ofinternal control audit report, Publish more detailed technical guidances on specification,establishing the supervision and punishment mechanism, speeding up the training ofprofessionals.

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Stakeholders-oriented Toward Internal Control Evaluation Research

On 25/09/2013, in Management, by rain

Following the “Anran”, the”Worldcom” and a series of financial scandal, theinternational society has given height attention to the internal control system. Internalcontrol is an important means of corporate governance, internal control evaluation isan important assessment to the business, scope of business, the level of competition anrisk, good internal control evaluation contributes to perfecting internal control system,and then improves the Management efficiency of the Enterprise.With the development of economy, the traditional emphasis on the interests ofinvestors “shareholders first” Management more and more damage the interests ofother stakeholders, stakeholder governance theory was gradually introduced into thecorporate governance and showed a very strong force.”The Enterprise internal controlassessment guideline” provides guidance for manager to evaluate the effectiveness ofenterprise internal control self-assessment, but the Enterprise still has a lot ofautonomy on the internal control evaluation. This article, based on the classificationof stakeholder, analyses the key points of the evaluation of internal control ofenterprises by the stakeholder. On the basis of stakeholder theory, building theevaluation of internal control system, in order to expand the existing internal controltheory research category, and to provide more scientific and theoretical basis for theinternal control evaluation.The article includes six parts. The first part briefly analyzed the background ofinternal control evaluation research, and revealed the theoretical and practicalsignificance, overviewed the theory. Secondly, introduced the stakeholder theory,analysed the stakeholder theory and corporate governance, introduced the relationshipbetween internal control evaluation and stakeholder theory,fully illustrated the studyof necessity and possibility, provided the theoretical foundation to the followingresearch. The third part of the article, based on the analysis of the company’s internalcontrol evaluation of the2010year of companies listed on GEM, found that listedcompanies’ internal control evaluation of existing problems, and we found that theinternal control evaluation study in the perspective of stakeholders was necessary. Thefourth part of the article stakeholders of the internal control evaluation of personalityand the key points were analyzed. The fifth part of the article of the stakeholders inthe evaluation of internal control of key points were proposed based on the construction in the perspective of stakeholders internal control evaluationsystem,content to be introduced, the Basic frame of the system and results areintroduced, and combined with the case put forward the company internal controlassessment. Finally, introduced the paper’s conclusions and disadvantages, built thestakeholders-oriented toward internal control evaluation research by the internalcontrol self-assessment,internal assurance and the external guarantee mechanism.

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The Research on the Internal Control Construction of Administrative Institutions in China

On 25/09/2013, in Finance, by rain

Internal control plays an important role in the Management work of administrative institutions. Due to the particularity of administrative institutions, the complexity of domestic internal control, as well as the lack of awareness of the importance of internal control in both theory and practice, the construction of internal control in administrative institutions of China has generally lagged behind and there are many problems existing which have seriously restricted the working efficiency and effect of administrative institutions and imposed adverse effect on the accounting information quality of the administrative institutions. Therefore, it is urgent that the work of investigation and research into the internal control of administrative institutions of China should be paid attention to and strengthened, on the basis of which an internal control system that can meet the characteristics and the Management mode of administrative institutions should be developed, what’s more, relevant laws and regulations should be improved.First part of this paper is exordium, which introduces topic background, topic significance, research method and content framework. The second part of this paper is literature review, which describes the origin and development of the internal control theory in administrative institutions of China and international public sectors. The third part is the China-foreign comparison, which has taken the United States, the United Kingdom, Japan, Netherlands, Australia and international organizations as examples, and compared the internal control of administrative institutions in China with that of international public departments from four aspects:responsibility subject, independence of internal audit, the evaluation standard system and the legal and theoretical basis. The fourth part of this paper is status analysis, where the five elements of internal control rules of American federal government which are control environment, risk assessment, control activities, information and communication and the monitoring respectively are taken as reference to analyze the existing problems of internal control of administrative institutions in China. This part has illustrated several problems existing in the internal control constructing of administrative institutions in China, which are defect of the internal control system, lack of internal control awareness, unreasonable organization structure, weakness in control and binding, and poor communication and supervision system respectively, and analyzed main reasons causing these problems. In the fifth part of this paper, the developing trend of the internal control of administrative institutions in China has been illustrated based on the existing government regulations and the macroeconomic conditions in China, and several policy suggestions are made. Finally, the conclusion is made that the internal control system constructing of administrative institutions in China should be improved as soon as possible, learning from the internal control rules in corporations which are relatively mature and the experience from the internal control system constructing of international public departments, combined with the particularity of administrative institutions and the real national conditions in China.

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Regulating Financial Internal Control System in Universities in China

On 25/09/2013, in Management, by rain

Since1990s, universities in China have been increasing their enrollment. And with the deepening of the reform of higher Education system and the widening of university’s the right of running educational institution, the scale of universities in China is making rapid expansion of universities. Colleges and universities are presenting a variety of functions. Many colleges and universities are engaged in teaching and research work, but are active in tertiary industry. For example, some universities and colleges are making foreign Investment or starting a business, and some are busy establishing new campuses and open secondary institute. The capital sources of universities and colleges have been changing from the old way that relays solely on state funding to the new one that raise funds through multiple channels, and the expenditure of funds have also shown a complex trend. The use of funds involves aspects such as teaching and research, infrastructure construction, special expenses and logistical support and so on. Although these diverse sources of income can provide strong financial support to colleges and universities’rapid development, it also makes university’s financial risk increase. Within these years, many colleges have been reported of having too many debts to carry, and financial corruption occurred now and then, which have caused a huge loss to universities’ asset, as well as affected the running efficiency and reputation of colleges and universities. By analyzing these phenomenons, we may find that these can be attributed to the defectiveness of colleges and universities’ financial internal control systems. Therefore, in order for colleges and universities to raise and use funds reasonably and appropriately and have the university’s financial control standardized and scientific so as to achieve sustained and healthy development, it is necessary for colleges and universities to establish a scientific and sound financial internal control system and have it seriously implemented. This paper takes University S which locates in western Sichuan province as an example, and is theoretical based on the COSO report and China’s “the Basic norms of internal control for enterprises”. With the help of existing research literatures, the author firstly made a detailed analysis on University S’s financial internal control problems and their causes. In relation to the growing financial risks within the university, such as the risk prevention and control of large bank loans, the author put forward some feasible suggestions on improving university’s financial internal control system, so that the schools can make improvement pointedly and can better strengthen financial internal control so as to create a healthy Economic environment for universities’future teaching, research and Management.

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The Problems and Countermeasures of Internal Control on Fixed Assets of HN University

On 25/09/2013, in Economics papers, by rain

Fixed asset is the material foundation for the successful operation of teachingand researching activities in colleges and universities. With the development of ournation’s higher Education, the scale of fixed assets of colleges and universities isexpanding rapidly, which occupies a great proportion of the total assets. But as amatter of fact, internal control of fixed assets in college and universities is weak, thefixed asset Management system construction is falling behind and asset managementis located in a low level for a long time. It is of great importance to strengthen theinternal control of fixed assets, maintain good Management, ensure the security andintegrity of fixed assets and guarantee the normal operation of colleges anduniversities.This paper takes HN University as the research object. Through the investigationof the internal control of fixed assets, and the comprehensive consideration of a seriesof regulations, such as the COSO internal framework, the Basic Norms of InternalControl and its supporting guidelines, Internal Control of Administrative Institutions,the author figures out the common problems in internal control of fixed assets of HNUniversity. There are still some significant leaks in the aspects of control environment,risk assessment, control activities, information communication and monitoring.Finally this paper puts forwards some measures to improve the internal control systemof fixed assets. The methods to optimize the internal control system are to improvethe internal control environment, strengthen risk Management, take effective controlactivities, carry out the information management and complete internal supervision.Establish and improve the internal control of fixed assets in HN University is of greatsignificance, which can strengthen the comprehensive management of fixed assets,expand the size of university,improve the teaching quality and ensure the sustainabledevelopment. Hope that the countermeasures that this paper puts forward can providereference for other colleges and universities and further make useful contributions tothe establishment and improvement of internal control.

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The Study of the Internal Control Evaluation on the Sales Operation in XCL Company Based on Fuzzy Evaluation Method

On 25/09/2013, in Management, by rain

The internal control is a significant guarantee for the prevention of financialfraud, improvement of business Management, achievement of good development of anenterprise. The effective implementation of internal control as well as its continuousimprovement should be based on the effective internal control evaluation, whilewhether the method is scientific has a direct impact on the effect of internal controlevaluation. As a widely used method at present, the fuzzy evaluation method can welldeal with the issues, such as simultaneous influenced by multi-factors, illegibility,qualitative judgment and so on, and in the internal control in the XCL company atoperational level, the internal control of sales operation has an important impact onthe capital turnover and continuing operations, therefore the paper starts from thesales operation of XCL company, using the fuzzy evaluation method to evaluate theinternal control of the case company and to improve the internal control system ofsales operation and the implementation effect.Based on the draw of existing research at home and abroad and elaboration of therelevant theory, combining with the specific situation and current relevant internalcontrol system of XCL company, the paper is to select the internal control evaluationsystem for XCL company’s sales operation from five aspects in the COSO frameworkof internal environment, risk assessment, control activities, information andcommunication and internal monitoring; then, it carries out a questionnaire survey inXCL company, and makes a fuzzy evaluation on the results; finally, based on thefuzzy evaluation score of various indexes in XCL company’s internal controlevaluation of sales operation, it analyzes the problems existing in the customer creditmanagement, the loans recycling, the internal communication and the sales return,then puts forward corresponding recommendations for improvement.Taking XCL company as the object of study, the paper hopes to start with thispoint to build the internal control system to evaluate the sales operation of enterpriseslisted in small and medium-sized board and to find out and analyze the problemscommonly shared by the similar enterprises in the internal control of sales operation,thereby giving some advice and helping to evaluate and improve the internal controlat operational level in the case company and other similar enterprises.

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The Internal Control of Rural Cooperative Economic Organizations Based on Risk Management

On 24/09/2013, in Agriculture, by rain

Hebei Province as a major Agricultural province, the development of rural cooperative Economic organizations attaches great importance by the provincial government. Which has played a pivotal role in the promotion of farmers’ income and to speed up the process of Agricultural modernization. However, from the current development, the rural cooperative Economic organizations bud late, covering the narrow, single services, especially the inadequate internal controls, resulting in Management lags behind. The face of the risks that may be encountered in the course of business, such as internal Management, external environment, technology, market factors, can not effectively identify and prevent which seriously hindered the healthy and orderly development of the rural cooperative Economic organizations. Therefore, how to guard against various risks of rural cooperative economic organizations is a priority, to establish a comprehensive system of internal control based on risk management is the most effective means.Through to collect the relevant documents of the rural cooperative economic organizations at home and abroad, the paper has a comprehensive summary to the status quo of rural cooperative economic organizations in Hebei Province. The text is mainly discussed from six aspects: (1) the paper described the research background ,the purpose and significance of this study . Carefully combing and analysis on internal control of the status quo of the rural cooperative economic organizations at home and abroad, introducing the thesis research ideas and research methods; (2) This chapter which elaborate the connotation, characteristics, as well as risk management and internal control theory; (3) with the field surveys, This paper presents the problem which exists internal control of the rural cooperative economic organizations, including the member of the rural cooperative economic organizations have not recognizing the significance of internal control, the lack of a sound financial system, the organization is not perfect, decision-making unreasonable mechanism of checks and balances failure of the board of supervisors; no reasonable mechanism for the distribution of benefits, risk management awareness is weak, the lack of effective risk identification, assessment and response mechanisms, control activities are not in place, the lack of internal and external oversight mechanism: and the problem produced by deep-seated reasons for the analysis; (4) the combination of internal and external risks facing the rural cooperative economic organizations, and the paper analyzes constraints was of the risk management. Hebei Province rural cooperative economic organizations internal control system has been constructed which based on risk management . next the chaper also expounds the rural cooperative economic organizations internal control design objectives,principles, characteristics and content. (5)targeted internal control safeguard measures of rural cooperative economic organization; (6)make a summary and proposed deficiencies in order to make more in-depth study in the future.The innovation of this paper are: first, through literature analysis and field investigations, analysis of internal control problems to the rural cooperative economic organizations; Secondly, the construction of the internal controls system of rural cooperative economic organizations based on risk management in Hebei Province, Strengthen the prevention capacity to internal and external risks of rural cooperative economic organizations.

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Explore the Smes Internal Control Issues

On 23/09/2013, in Management, by rain

Small and Medium-sized Enterprises(SMEs) are an important part of the nationaleconomy, it plays an important role in promoting Economic development and Social stability.There are many problems such as the fragile Enterprise Management framework, outdatedideas, confusion in the Enterprise Management level and poor transparency of financialmanagement for China’s SMEs internal control. The large number of examples to prove “therewill be fast development with good control and slow development with poor control,therewill be chaos without control.” Currently the internal control has become one of the factorsaffecting the development of Small and Medium-sized Enterprises(SMEs). SMEs shouldstrengthen internal controls and improve Economic efficiency that has become the consensusof current theory workers and enterprise managersThe Article2of “Basic norms of internal control ” of Treasury Department clearly pointout internal control refers to the unit formulates and implements a series of methods,measures and procedures with internal control function in order to ensure the effectiveconduct of operational activities, to ensure the safety and integrity of assets, to preventdeception and fraud, so that to achieve Management goals. Internal control system is a productof Social and Economic development to a certain stage, it must be subject to the influence ofsubjective factors and the external environment. To give full play to the role of internalcontrol in the modern enterprise system, internal control system must continue to constantlyimprove and standardize, so that they truly meet the actual needs of the development. China’sinternal control system of a late start, and its development in general has undergonegermination, development and mature in three stages. The current generic internal controlpractices are only just beginning to establish, internal control specification that is stillimportant guiding significance for SMEs is still in the exploratory stage of the study.The paper focuses on investigation of internal control issues for SMEs from internalcontrol field of view. Based on the management and accounting, using the research methodswhich combine cases with theory, by analyzing the current situation of internal control and thecharacteristics such as in large quantity, operations in a single, the industry is fragmented,small individual scale, flexible mechanism, strong adaptability, high efficiency, universalphenomenon of the family patriarchal system, direct centralized control than decentralizedmanagement, etc., of small and medium enterprises (SMEs) in China. Come to that our country SMEs internal control has the following characteristics: first, the degree of attentionfor the SMEs internal control is directly dependent on the attitude and determination of thebusiness managers, but the level of its internal controls are generally not high; second,important project’s internal accounting control was as the main way; Third, cross-check as themain means, etc.The paper use the exposition of nature, subject, object, etc. of internal control in internalcontrol theory, summed up many problems existed on internal control, it included internalcontrol environment poor, internal control system is not perfect, low quality of the internalcontrol system of actors, the lack of effective oversight mechanisms,etc. Meanwhile for theseproblems we proposed Strengthen internal control mechanisms, to better promote rapid andhealthy development of small and medium enterprises(SMEs), which start with severalaspects such as to create a good internal control environment, improve the quality ofmanagers, expand the sense of responsibility of the staff of the internal control, establish andimprove various rules and regulations, strengthen the external oversight and internaloversight, etc.The paper on expanding the scope of the study of internal control is also madeconstructive comments, such as the combination with the related theory of Economics,management science, game theory, property rights theory to expound internal control theory,we will expect there should be a new breakthrough.

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Research on Internal Control and Corporate Value in Listed Companies

On 23/09/2013, in Management, by rain

In recent years, with a number of listed companies from the stock fell to bad caseseven bankruptcy of Enterprise efficiency landslide, large enterprises at home and abroadhave been exposed the phenomenon of financial favoritism scandal after another, theexposure of these scandals in the marketplace the image and the future developmentprospects of the Enterprise will result in a significant negative impact, but also causingserious damage to the international Investment market. How to prevent similar incidentsfrom happening again, how to standardize business operations all aspects of the process,how to reduce the potential risks that may arise, at home and abroad were introducedmany of the norms on the internal control, internal control system of concern in recentyears research subject. The pursuit of profit and value growth is a common goal intoday’s market, rarely based on the perspective of business Management to enhancecorporate value for the internal control to explore research in the theory and practicecommunity.This project is another way to focus on Enterprise value, corporating governance isintroduced into the field of internal control. Internal audit and control perspectivetowards the strategic position of the enterprise value-added. The issues discussed inprevious research experience as a reference to start from the analysis of internal controls,its enterprise value on a system to study the relationship between the two, and then theinternal control as a means of business Management to enhance corporate value, toimprove the effect of corporate governance. Extend the breadth and depth of China’sinternal control of doctrine. I first read a lot of literature on the basis of first summarizedand outlines the research of scholars of internal control, on this basis, summed up themodern theoretical circles for the definition of the concept of internal control and reviewthe process of its evolution in collecting. Then described the important elements of theinternal control, the five elements of the framework of this theory in the empiricalconsider the theory of reference in the index selection. Then explained the mechanism ofinternal control is passed enterprise value, the article assumes that the proposedtheoretical basis. I combined with the empirical data of listed companies by the end of2010and previous internal control the use of the evaluation of the five elements, expressed as explanatory variables formed the basis of the internal control elements withquantifiable internal control evaluation, complemented by three control variables.Internal control the comprehensive evaluation index is a key link in this paper, the listedcompanies in China, in the evaluation of internal control in accordance with differentimportance to each evaluation division level, giving each index in line with the weight ofits degree of importance, five of the level of internal control Composite factor indicatorsand internal control enterprise value index correlation and regression analysis Thefindings show that: the negative correlation of the supervisory elements of the enterprisevalue should be relevant departments, internal control by the five elements is passed tothe enterprise control of Environmental factors in the value of the five elements is toimprove the quality of internal controls is the key to enhance corporate value, and thenverify that a superior system of internal controls a great extent to promote theenhancement of corporate value.This paper aims to study the internal control and enterprise value implied relationshipbetween the ultimate value-added focus on value. Measures to regulate the internalcontrol of listed companies in China to provide a basis for practitioners to take hope outof modest means to establish the contribution of the internal control system and improvethe listed companies in China.