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Research on Disclosure of Internal Control of the Board of Medium and Small Listed Enterprise

On 08/10/2014, in Economics papers, by rain

Small and medium-sized enterprises in China occupy an important stance in the business activities, of occupying Chinese GDP and contributing 60% employed.Meanwhile, devoting major efforts shape medium and small enterprises in urgently. But developing SMEs (Small and medium-sized enterprises) need capital to support, the unimpeded margin outlet will develop to lay solid foundation for SMEs, China try to circulate SMEs board from 2004, the margin is in good shape, opened widely the margin outlet of SMEs, and favoring the SMEs was the shapes of particularly high new technique businesses. However, repeatedly delivering for the last few years of company finance scandal events and gobble up global financial crisis, make the investors pay attention to the condition of business internal control come into operation, especially the internal control information of public companies disclosure.This paper launches the internal control information of SMEs board quoted company disclosure search according to this back ground research SMEs board in the Year 2006-2009’s internal control information disclosure, contrast SMEs board and the master leaf of the internal control information disclosure conditions and do the specification studies on the internal control report of SMEs board. The substantial evidence that the disclosure impact factor of the internal control information of SMEs board compulsive information disclosure is worth of with company studies.This paper is totally divided into six fractions; the first part is pointed out the thinking way of this paper search. Second part is that elaborated the conceptual framework of internal control and internal control information disclosure. The third part is that introduced the SMEs board quoted company internal control present condition in detail. At the same time, pass the concrete condition of the concrete introduction SMEs board quoted company disclosure internal control report. The number four-part analyze the factor of effecting the internal control information of SMEs board quoted company disclosure. The fifth part elaborates this paper searching of main conclusion. Finally, by evidence study and the specification study of SMEs board, giving the suggestion of disclosure of the substantial contributes to improving SMEs board, and proposes textual scarcity of sectionTo sum up, four points of innovation and contributions is given. As follow: Firstly, the data age of selection more new than others’, sample selection of listing tectonic plate for SMEs board. Secondly, proposed internal control information of disclosure is worth of with company of relation pattern. Thirdly, the policy suggests combining native state of the nation and the authorities’search. Fourthly, the specification search on different industries and the different ages.This paper is laid particular emphasis on evidence study, assist it to specification study, at the same time, the search method that the character description combines together with chart to draw a conclusion:The company scale, company lever and company in the black horizontal, stock equity agglomeration degree, investors of SMEs board quoted company holds a ratio and deluxe supervision layer to hold a ratio to all effect an internal control information disclosure horizontal, but stock equity agglomeration degree, internal control information disclosure index and company lever and investor’s holding a ratio will effect company worth.

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The Study of Income Method for Enterprise Value Valuation Calculate Discount Rate Based on Model Dcapm

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

Internal control and the disclosure of internal control information in particular isa hot issue in recent years. Accounting scandals and cases occurred in largecompanies in the United States,as a result Congress of the United State passed theSarbanes-Oxley Act. The act is a shock as it required listed companies to disclosetheir internal control reports and require certified public accountant to audit thecontrol reports.Business community in the U.S. think that the Sarbanes-Oxley Act hadthe greatest impact on the community of business and accounting.Since theSarbanes-Oxley Act,the disclosure of internal control information have into theforcing stage,at the same time,acts in other countries have passed.In our country, in2006,the Shanghai Stock Exchange and Shenzhen StockExchange has issued internal control guidelines. In the year of2008, Ministry ofFinance,Audit Commission, CBRC and CIRC jointly issued the standards of theInternal Control,in2010, five ministries have developed a complete guide tostandards,it Required listed companies to assess the effectiveness of the internalcontrol,to disclose the annual report of self-evaluation, and to hire Accountants toaudit the reports.In this paper, a combination of theoretical and empirical information on thecorrelation of internal control disclosure and stock price changes.In this paper,atfirst,I make the descriptive analysis on disclosure of internal control information inShanghai-listed company, to reflect the specific situation of disclosure of the internalcontrol from the figures. Through empirical testing of the relation of internal controldisclosure and the changes of stock price in the correlation, empirical results showthat: Detailed disclosure of internal control information will have a significantpositive effect on stock price, on the contrary, the simple disclosure of internal controlinformation will have a significant negative impact on stock price. At the base ofdetailed Disclosure, based on the based on standard does not impact on stock pricesmore significantly than based on guidelines, we also try to explain thisproblem.Finally, make policy recommendations according to empirical results toimprove the quality and degree of the disclosure of the internal controlinformation.Improve the internal control system to improve the disclosure of internalcontrol d information, and finally to improve the share price of the listed companies.As a result,it can provide empirical evidence for the improvement of oursystem of disclosure of internal control information.The innovation of this paper is that complement to the Basic norms andguidelines to make a set for January1,2012to lay the foundation for fullimplementation,this will help companies to understand and grasp the essence of itsmain content and enable enterprises to accurately disclose the self-evaluation reportand audit report. In closely connection with the Basic norms of the institutionalcontext on the basis of the beginning of the implementation of the new system toconduct empirical analysis, to keep abreast of the implementation of the basicspecification, while the problems put forward policy recommendations.

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The Research of Internal Control Evaluation of the Listed Company in China

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

Since the21st century, there were numbers of enormous influence financial fraudcases happened in the listed company, even consist of many large enterprises whichwere famous for its perfect internal control, thus, the problem of internal controleffectiveness begins to be close attention around the world, the theory and practice areactively investing in the study of internal control effectiveness. Internal controlevaluation is one of the most effective ways to set up and carry out the internal control,so it gradually became a key study content. On April26,2010, the ministry of financein China, securities regulatory commission, the audit commission, the bankingregulatory commission, the insurance regulatory commission jointly issued “theenterprise internal control supporting guidelines”, which marked the internal controlstandard in China had its own systems, and laid the system foundation for the furtherresearch of internal control evaluation.The paper is trying to construct the listed company’s internal control evaluationsystem based on the analysis of the internal control theory and the development processof internal control, and connecting with the analytic hierarchy process and fuzzycomprehensive evaluation method to establish internal control evaluation model of thelisted company, then used it in YuTong Bus to verify the rationality of the evaluationmodel. The structure of the text as follows: Chapter1, analysis the research backgroundand research significance, introduces the relevant research results of internal controlevaluation. Chapter2, discusses the related theory about internal control and internalcontrol evaluation, as the theoretical basis of internal control evaluation system. Chapter3, talks about the internal control evaluation’s necessity of listed companies, andconstruct the listed company internal control evaluation, this paper introduces the basicframework for internal control evaluation of the Basic elements. Chapter4, establishesthe internal control evaluation model of the listed company. Chapter5, uses theevaluation model in YuTong Bus. Chapter6, illustrates the study conclusion andshortcomings.

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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.