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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.

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The Study on the Construction of Social Organization’s Internal Control System

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

Social organization, as an important link in the process of stimulating the Economic,political, cultural and Social construction settled as development goal in the report tothe Seventeenth National Congress of the CPC, and as non-governmental public fieldoutside the governmental&political field as well as the market Economic filed, isnow showing its indispensability providing public service, taking part in publicmanagement, securing public benefits, reflecting public’s appeal, adjusting socialconflicts, supporting public charity and being a new force of the construction of aharmonious society. It is also a significant support force to the Party and theGovernment regarding Social Management application.Only when social organization enjoys prosperous and healthy development can weimprove the overall social harmony to higher level, realize the stability of the peopleand accelerating overall social development. Since developed for only few years, fromperspective of organizational structure, managing methods and supervision mechanism,social organizations in China still have lots of defects resulting in frequent scandals.But all laws the government carried out cater to enterprises but not socialorganizations although no high-frequency bankruptcy occurred in social organization asin enterprises. However, the truth is social organizations also face lacking of internalcontrol and Management deficiency as well as other issues.Therefore, constructing internal control system not only can help socialorganizations find management and operation defects in time but also help decreasingpossibilities of risks through risk control methods. Thoroughly execution of internalcontrol regime will be very benefit for the combination of external and internalsupervision, which will accelerate the transparent and public operation, standardizemanagement behaviors. Stimulating the regime’s well-organized operation and healthydevelopment has important practical meaning for the deepening of social system reform,strengthening construction of a harmonious society and improving the opening-up level.The article is divided into five parts. The first part introduces the researchbackground and meaning, domestic and foreign scholars’ research results on current social organizations’ internal control as well as research methodology and content.The second part is about research theoretical bases that are illustrated fromsociology, Economics, management and other perspectives. The author firstly definesthe growing base that is regarded as civil society in western world for socialorganizations, confirms the existing purpose and meaning of social organizations.Illusion on the existence of resources and stakeholders in social organization internalcontrol and analysis on exist situation of social organization will also be made.Secondly the author will provide relative theoretical guide to internal control systembuilding according to Good Governance Theory, Self-government Organization Theory,Risk Theory and Internal Control Theory.The third part of the article discomposes the current situation of the internal controlof social organizations. First, foreign existing advanced experience on socialorganization structure building illustrated. Second, current situation of China’s socialorganizations’ risk management and supervision is studies. According to disclosure ofthe current situation, the author analysis the risks that our social organizations areconfronting and points out our problems in social organization supervision.The fourth part builds the overall social organization internal control system. Theauthor studies the whole structure according to the Five Factors on internal control andbuild initial regime for social organization internal control combing theories andChina’s specific national condition.In the fifth part, the author proposes relative strategic suggestions on internalstructure installation, risk management system, control measures, informationcommunication regime, supervision and inspection regime and so on, attempting tostandardize management methods and accelerate its healthy development so as toprovide referential idea for the strengthening of social management innovation andsocial development.

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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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