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Study on the Internal Control of PetroChina

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

With the rapid development of global economy, more risks ofenterprise management and more challenges to the authenticity ofaccounting information are appeared. It is necessary to establish an internalcontrol system which is an effective internal self-regulation mechanism. Ourgovernment and the supervision departments of listed companies focus moreattention on enterprise internal control in recent years. Strengtheningenterprise’s internal control that is a reliable guarantee of sustained, steadyand healthy development of enterprise’s economic and financial situation,and that is a basic work to further improve the quality of enterprisemanagement and the financial situation. While, enterprise internal control isalso a necessary method which could create a standard corporate governancestructure, well-establish the modern enterprise system, and improve themanagement level.The thesis expounds the definition of internal control in COSOframework and the development of internal control theory. It organizes theachievements which were made by the PetroChina Company during theprocess of establishing the internal control system, and it summarizes thefeatures of internal control of PetroChina that includes two highlights:comprehensive enterprises risk management and overseas risk prevention. In addition, the thesis introduces the problems and deficiencies about theinternal control system of PetroChina in the process of implementation andmakes the appropriate and targeted solutions.The thesis which summarizes and analysis the advanced experience ofinternal control system in China large state-owned enterprise (PetroChina)provides a reference to other enterprises and plays a bit role to thepromotion and development of internal control system in China.

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Evaluation and Empirical Study on Internal Control of Listed Companies of Shandong Province: Empirical Evidence of the Year2010

On 21/09/2013, in Management, by rain

With the rapid development of the listed companies in China, various potential risks are increasingly apparent. Many enterprises experienced huge loss of assets, financial fraud, business failure or even went bankruptcy. One of the reasons that can not be ignored for their failure is that their internal control has been invalid or they did not establish internal control ever before. In order to enhance the ability of risk prevention and tamp the foundation for internal management, it is necessary for enterprises to establish and implement a scientific and effective internal control system. The listed companies in Shandong province play an important role in domestic capital market. Therefore this paper takes the internal control system of Shandong’s listed companies as its research object. Based on the foreign and domestic internal control theories and empirical research results, and guided by the internal control framework established by”Basic Standard for Enterprise Internal Control”, this paper constructs an internal control evaluation index system to evaluate and analyze the status of the internal control system of Shandong’s listed companies.Firstly we summarize the present situation of the construction and implementation of the internal control system of Shandong’s listed companies. The data sources in the listed companies’ public disclosure in capital market until April30,2011, including”2010Self-assessment Report of Internal Control”,”2010CPA Audit Report of Internal Control”,”2010Annual Report” and other relevant information. We find some problems, such as imperfect corporate governance structure, the lack of initiative in the construction of internal control system, weak implementation and supervision of internal control, and so on.Secondly we classify and quantify the public disclosed internal control information, and construct an internal control evaluation index system, which contains5first-grade indexes and25second-grade indexes with the five internal control elements as its framework. We calculate the Internal Control Index(ICI) to evaluate the level of internal control of Shandong’s listed companies and conclude that:the overall level of internal control of Shandong’s listed companies is moderate; the level of internal control of companies in Shenzhen Stock Exchange is higher than that in Shanghai Stock Exchange; the differences among different industries are not significant; it indicates that Shandong’s listed companies have achieved good results in the construction of internal control system in recent years.Thirdly we empirically study the influence factors on the internal control level of Shandong’s listed companies. We select independent variables from the aspects of corporate basic characteristics, external supervision characteristics and listed regional characteristics, and use methods of descriptive statistical analysis, correlation analysis, and stepwise regression analysis. The results show that:the number of listed years is a significant negative influence factor; the type of audit opinion on financial statement is a significant positive influence factor; company size, growth, authority of audit agency, ST/PT and listed sites are non-significant positive influence factors; overseas listed is a non-significant negative influence factor; yet ownership structure and profitability can not explain the dependent variable at all.Finally, we make some recommendations, including improving corporate governance, strengthening internal control consciousness, perfecting internal control links and strengthening internal control supervision.

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The Improvement Research on Internal Control System of Cash in HNG Tabacco Industry

On 21/09/2013, in Agriculture, by rain

Cash internal control is a series of mutually restraint and co-ordinated methods orprocedures to ensure cash’s safety and integrity, make the receipt and payment of cashreasonable and legal and make the information of cash correct. Cash, regarded as the”blood” of enterprises, has characteristics as strong liquidity and high risk, and thus iseasy to be stolen, misappropriated or corrupted by lawbreakers. Recent years havewitnessed a phenomenon that cash theft cases emerged in an endless stream. Theamount is big and the range is wide. All these shocked us. Such cases are largelycaused by the failure of internal control, especially the currency capital control.Recent years, with the promulgation of Basic Norms of Internal Control, theconstruction of internal control system has been put more focus on. Chinese tobaccoindustrial companies, walking towards modern mode of the standardization ofmanagement, are facing with the innovation of internal control system. HNG TobaccoIndustry, as a representative of all tobacco industries in China, its cash internalcontrol system is relatively weak. It has high risk in the purchasing and transportationof tobacco leaf. At the same time, the purchasing of raw materials needs a largeamount of money. The Group Management Model has problems in the management ofthe cash in its branches. These are all urgent problems. Therefore, this study ispractically significant.After viewing related papers, this paper first investigates the characteristics ofcash and the effect on the company’s internal control system, believing that cashinternal control system is good to strengthen its management and economic benefits,then divides cash business into three categories, as planning and allocation, receipt andpayment and checking, to study. In the following chapters, it analyzes the existingproblems by the five elements of internal control and theories of principal-agent,decentralization and human nature supposition. Then, it gives suggestions to improvethe cash internal control system. This paper also gives a redesign of the cash internalcontrol system of the company and optimizes related operation process.

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A Study on Internal Control Evaluation in Changsha Tobacco Company Based on Internal Audit

On 21/09/2013, in Agriculture, by rain

With the growing financial fraud, the failure of internal control has become thefocus of corporate governance, causing theorists and corporate management payingmuch attention to internal control. Internal control is a systematic and dynamicprocess, including design, execution, evaluation and improvement. Internal controlevaluation is the re-control of corporate internal control, helping enterprise perfectinternal control. Through the implement of internal control evaluation, on one hand itcan help enterprise find problems and solve them, bettering internal management andimproving competence. On the other hand, it can help enterprise perfect the corporateorganizational structure and management system, promoting the healthy developmentof enterprises.As to solve these problems, from the internal auditing point of view and theprocess of business cycle, the author analyses the current situation of tobaccocompany and its internal control problems, established the proper internal controlevaluation system based on accounting, auditing, corporate governance and financialmanagement. This paper firstly outlines the basic theories of internal controlevaluation, analyzing the concept of internal control, the differences from internalaudit and the framework of internal control evaluation system. Then it states thelocalization and the evaluation function of internal control, including the superioritiesof the evaluation by internal auditor, the relationship between internal audit andinternal control evaluation system, the way and requirements of internal controlevaluation. This paper introduces the current status of internal control evaluation inChangsha Tobacco Company and the company’s basic situation, analyzing thenecessity and possibility of internal control evaluation. Finally, based on the analysis,this paper tries building the framework of internal control evaluation index system inChangsha Tobacco Company.As the state-owned enterprise, Tobacco Company plays a significant role in thenational economical management. This paper aims to promote the operating efficiencyand effects of state-owned capital, ensuring the value increase of state-ownedcapital.

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The Operational Risk Internal Control Research of Farmer Loan in the Agricultural Bank of China

On 21/09/2013, in Finance, by rain

In recent20years, related data showed that it had happened more than120bankcrisis in over100countries in the world and almost all crisis were related withoperational risk, so the harmfulness of operational risk should be taken intoconsideration seriously. Compared with the credit risk management and market riskmanagement, Agricultural bank of China was lack of inexperience in studying andmanagement of the operational risk, well behind the western commercial Banks.However, the competitiveness of the commercial banks depends finally on the level ofinternal management and the construction of risk control system. Consequently, it isof great significance for commercial bank to improve its operational risk internalcontrol system and perfect the operational risk internal control system by usingmodern commercial bank management experience for reference under taking its actualsituation into consideration.Firstly, this paper reviews research results which scholars both at home andabroad study commercial banks operational risk and states related theory ofcommercial bank internal control and commercial bank operational risk in detail,including specifically the definition, principle and characteristics of commercial bankinternal control, the definition, features, classification of commercial bankoperational risk, operational risk identification, operational risk assessment,operational risk response and the analysis of the relation between the internal controland operational risk. And then basis for the related study and on the basis of farmerloan of Agricultural bank of China, the paper points out the existing problems ofoperational risk internal control of farmer loan in the bank and analyses the reason forthe existing problems. Finally, this paper introduces the foreign experience about howto manage operational risk by using internal control and under taking the actualsituation of farmer loan into account in Agricultural bank of China, gives some adviceabout how to improve operational risk internal control of farmer loan.

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Research on Improving the Internal Control of Costs and Expenses of National Tobacco Corporation in A Province

On 21/09/2013, in Agriculture, by rain

At present internal control system of costs and expenses has been established inmany Chinese companies.However,it is more common to see establishment of variousfinancial management system,such as the cost accounting system,comprehensivebudget management system,business entertains cost management system,travelexpenses borrowing and expense reimbursement system,etc,rather than establishingcomprehensive internal control system of costs and expenses.The lack of integratedinternal control system of costs and expenses results in flaws when the system isestablished and implemented.In terms of this phenomenon,this paper discusses basictheories of costs expenses internal control and analyses current situation and problemsexisted in National Tobacco Corporation in A Province,and raises correspondingsolutions to consummate internal control system of cost expenses in this company.This paper is divided into five chapters.Chapter1,Introduction.On the basic ofintroducing the research significance and research background,I review andsummarize the relevant documents and materials at home and abroad,including thebasic concept of the internal control, the relationship of internal control and corporategovernance as well as theories concerning internal control of costs andexpenses.Chapter2,The basic theories for the internal control in costs andexpenses,Firstly,concept and basic content of internal control are introduced.Then thepaper demonstrates rationale of internal control in cost and expenses to prove thenecessity of it.Besides, the paper concludes features of tobacco industry and internalcontrol of costs and expenses in tobacco industry.Chapter3,according to the internalcontrol framework in costs and expenses,the paper analyses current situation andpinpoints the problems concerning internal control of costs and expenses of NationalTobacco Corporation in A Province.Chapter4,various suggestions and solutions areproposed according to existed problems.Chapter5,the paper provides a safeguardmechanism for the improvement on internal control of costs and expenses.

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Research on Financial Reporting Internal Control Evaluation of A Tobacco Company

On 21/09/2013, in Agriculture, by rain

More and more financial scandal is occurred in the world, Especially, financialscandal is widespread in State-owned enterprises. For example: China Aviation Oilin2004. However, internal control evaluation provisions rarely. Financial reportinginformation distortion led to stakeholders to pay more attention to the reasons. Thestudy found that the failure of internal control is one of the important reasons.Therefore, how to effectively carry out the financial reporting internal controlevaluation has become the academic research focus. It can solve the problems ofinternal control system and minimize damage. At this stage, Studying the tobaccocompany’s financial reporting internal control evaluation is highly targeted andpractical significance.In this paper, By analyzing theory about financial reporting internal controlevaluation, Based on A Province T Tobacco Company belongs a monopoly industry,Combined with the situation of China’s financial reporting internal controlevaluation. Analyzing Financial Reporting Internal Control’s Situation. Thenstudying problems about financial reporting internal control evaluation. Finally, Putforward the measures. It based on the financial reporting process. IncludingPreparation is divided into financial reporting, financial reporting and it and submitfinancial reports, financial reporting, analysis and evaluation of four stages. So thatExecutor can find problems, and based on problems,Administrator can Improve theinternal control system.For the measures of A Province Tobacco company’s financial reporting internalcontrol’s the evaluation. It has some applicability on the same industry. So it helpscompany improve the financial reporting internal control system to ensure theauthenticity of financial information, and reliability.

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Ownership Structure,Internal Control and Earnings Quality

On 21/09/2013, in Management, by rain

This dissertation is guided by “listed company’s internal control guidelines “ofShanghai and Shenzhen Stock Exchange from internal control perspective. Using theinternal control evaluation report of the2106A-share listed companies issued from2007to2009, this dissertation defines the related concepts and uses SAS9.1statisticsoft to analyze the impact of ownership structure on earnings quality by the mediationeffect of internal control.Based on the core of internal control, this dissertation measures ownershipstructure in three forms: the shareholding of the largest shareholder, ownershipbalance power, and the shareholding of institutional investors, use Jones model toevaluate earnings quality, and tests intermediary effect of internal control on therelation between ownership structure and earnings quality. The empirical results showthat:(1) The shareholding of largest shareholder has a significantly negative influenceon earnings quality, in other words, the higher share ratio of the largest shareholder is,the lower earnings quality will be; in addition, ownership balance power is moreconducive to improvement of earnings quality, the shareholding of institutionalinvestors is high, the earnings quality will be lower.(2) The shareholding of largestshareholder is negatively correlated with internal control which is in form of “thehigher shareholding of the largest shareholder, the lower level of internal control”;The relationship between ownership balance power and internal control issignificantly positive, the higher ownership balance power, the better internal controllevel; The relationship between the shareholding of institutional investors and internalcontrol is significantly positive, which is to say”the higher institutional investorsshareholding, the better level of internal control”.(3) The internal control has theintermediary effect on the relation between influences of “shareholding of the largestshareholder, institutional investor” on earnings quality, but for the ownership balancepower,the intermediary effect is not obviously.At last, this dissertation summarizes the related conclusion briefly, put forwardsome suggestions which is based on the related research conclusion, and point out thelimitation and future research direction.

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Demonstration Research on Internal Control and Enterprise Value of Listed Company

On 21/09/2013, in Management, by rain

The announcement of The basic norms of enterprise internal control and Enterpriseinternal control matching guidelines marks that the basic norms of internal control systemhas been built in China. At present, the basic norms of internal control system isimplementing gradually among Chinese listed companies:651,1076,1108and1618listedcompanies respectively disclosed internal control self-evaluation report from2007to2010;227,316,627and875listed companies respectively disclosed the internal control auditreports issued by the accounting firms from2007to2010.This thesis assumes that: there is a positive correlation between internal control andenterprise value based on the domestic and international theoretical study on internal controland enterprise value. In order to verify the assume, this thesis selects1574listed companiesas our sample which disclosed the internal control self-evaluation report and the internalcontrol audit report from2008to2010. By using the correlation analysis and regressionanalysis of the1574listed companies’ internal control and enterprise value data, the findingis: there is a significant positive correlation between internal control and corporate value. Atthe mean while, the thesis recommends that companies establish internal control systembased on enterprise value and recommended that the regulators to strengthen theimplementation of the internal control system of supervision of listed companies. The majorcontents of this thesis are as follows:Section1: Abstract. It discusses the background and significance of the study, the research athome and abroad and the research methods and ideas.Section2: Basic theories of internal control and enterprise value. It discusses the theories ofinternal control and enterprise value and this part is the basic theory of this thesis.Section3: Present situation analysis of the internal control among listed companies. First, itdiscusses the development course and current situation of implementation of internal control, then itdiscusses the development of the internal control simply.Section4: Empirical analysis of the internal control and enterprise value. By using thecorrelation analysis and regression analysis of the1574listed companies’ internal controldata and enterprise value data, it verifies the assume proposed above, then draw a conclusion.Section5: Case analysis of the internal control and enterprise value. By using case analysis,the thesis verifies further: there is a positive correlation between internal control andenterprise value.Section6: Summary and suggestions. It summaries the thesis and gives some suggestions andthen some deficiency.

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The I Improvement Research on Accounting Information System of A China Tobacco Company

On 21/09/2013, in Management, by rain

The internal control system is an important element in the modern enterprisemanagement. Since the beginning of the21st century, IT technology is widely popular.The company’s financial affairs have been integrated with the business. The internaland external environment accounting has changed greatly. The rapid development ofnetwork technology has changed the environment and the concept of enterprisemanagement. It also broaden the scope and content of the enterprise management, Allof these affect the specific content and features of the internal control system, andcause the internal control and control of content change. The information technologynot only gives organization some new change requirements, but also brings theopportunities and challenges to the accounting. To adapt to these changes, companiesneed to improve management efficiency, to ensure business efficiency and reliabilityof financial information, which high demands on internal control. At present, themajority of our companies is trying to or has established a accounting informationinternal control system, but it is still in its infancy. Therefore, the establishment of asound accounting information internal control system is not only the internal mutualrestraint, mutual supervision, but also the essential requirements of the enterprises toenhance their own competitiveness. As the most advanced, most authoritativeinformation technology management and control system in the world-the COBIT canprovide us a good reference. In this paper, through seriously studying the theory ofthe internal control systems, it detailed analysis the development of internal controlaccounting information system in information technology environment at home andabroad by induction and comprehensive analysis method. By using the theory withpractical method, this paper makes some analysis and guidance to the companythrough system, cybernetics, information theory. Then it focuses on the principle andsteps of COBIT control system in the accounting information system. Finally, byanglicizing A tobacco company’s accounting information internal control system, thispaper pointed out the existence problems. On the basis of COBIT4.1informationmanagement and control system framework, this paper put forward constructivesuggestions, aimed at the problems.This article aims to offer some suggestions for the development of enterprises, inorder to improve the accounting information system of internal control system to ensure the effective implementation of the measures, and to improve the enterprisemanagement level, according to my own learning content,