On the construction of the internal accounting system

Abstract: The internal accounting system is the national laws and regulations necessary to complement the implementation of the national accounting laws and regulations of the important foundation and guarantee of the enterprises to establish a sound internal accounting management system, help to regulate the accounting order to improve the accounting system, management system improve unit of Economic management.

Keywords: internal accounting controls

A sound sense of internal accounting controls

(A) improve the quality of accounting information necessary requirement
At present, China is in the old system, the transition phase, the low efficiency of business operations, low efficiency and loss of human waste is more common, out of nowhere, there are chapters that do not follow, fraud, abuse and other misconduct have occurred. In this regard, authorities should be strictly controlled and banned, in order to create an orderly, fair and competitive market environment in which enterprises to ensure their own interests, while ensuring the improvement of the social and Economic benefits, while from within the enterprise, the establishment of sound internal accounting control system is regarded as a recipe.


(B) corruption from the source of an institutional arrangement
Corruption produce its complex social and historical roots, along with private ownership, class, public power generation resulting from these years, corruption a "high" posture, which is the social environment of increasingly complex market economy stage of development and supervision of power there are some air when the weak link, but we also note that weakening the internal accounting control is an important factor can not be ignored. It is in this sense, the Ministry of Finance and published << internal accounting control standards>> as a corruption from the source, solve the problem in a radical institutional arrangements, is of important practical significance.


(C) the urgent need for international competition
After joining the WTO, China's enterprises will face fierce competition from large foreign companies and a strong challenge from the outside world, especially the face of fierce competition from multinational companies, increasing pressure on China's enterprises face more severe challenges, so , how to improve their competitiveness, how to participate in a more positive attitude to the trend to global competition, it will be China's enterprises are facing major issues and problems. urgent requirement of this Economic phenomenon must quickly establish a sound and effective corporate The internal accounting control system, improve management efficiency and effectiveness in order to fierce international competition in an invincible position.


Second, China's status of internal accounting controls

(A) the internal accounting control system is generally weak
At present, the vast majority of listed companies do not realize the importance of internal controls. A considerable number of listed companies has not been established internal control system of internal control system, although some form, but still lack of planning, fragmentation, can not play a regulatory company active role: even some listed companies on the understanding of internal control, there are still a lot of errors.


(B) financial and accounting fraud issues still outstanding report
The current number of listed companies to the interests of individuals or small groups, in the accounting data to make a fuss - really count false accounts, false accounts really mind, resulting in accounts and reality, virtual or imaginary loss loss win real real win for the transfer of state assets, stealing escape taxes, cosmetic results and other illegal purposes. false accounts of the past mainly for personal purposes, personal attempt to embezzlement, cooking the books to cover up the crime by now the situation has changed greatly, in addition to personal corruption, the more to corporate interests, corporate interests.


(C) a serious loss of state assets, the company expenses out of control
At present, China's state-owned enterprises are still state-owned assets of the phenomenon of severe would be loss of channel summarize, no more than two types: open drain and the potential loss. Open drain is visible and tangible loss of state assets, such as some in the Foreign purchases of state assets during mergers and acquisitions, low-cost sale of state assets: some state-owned assets transfer and sale process, the black-box operation, underestimated, and missed estimates of state-owned assets, low-cost transfer of state assets, state-owned assets and into personal pockets. potential loss is the loss of state assets. some state-owned enterprises in the business, the operators to use the actual control of the business, gain personal benefits, working hard to increase personal consumption. Links to free download http://www. hi138.com Third, our internal accounting controls and improve

(A) establish and perfect the system of accounting work
System of accounting work primarily standard units of accounting work, including the following systems: accounts processing system, the original records management system, quota management system, measurement inspection system, cost accounting system, property inventory system. To establish and improve accounting systems of work must be established and improved over the system, both of these systems work on the basis of accounting is the accounting of the main elements.


(B) to establish and improve nuclear pumping system
Audit system is the designated person in the accounting house of cards for account review, review of a system. The establishment of the system should also be combined with the responsibility system of accounting staff positions be considered together. Accounting is accounting auditing accounting work for the institutions themselves conducted a self-examination or audit of its work aimed at preventing accounting errors and fraud related personnel by the audit, the daily accounting work arising from negligence, errors in a timely manner to correct or stop in order to improve the quality of accounting Internal audit system is different from the internal audit system, the former is a work in-house accounting system: the latter is the unit in a separate set of accounting bodies outside the internal audit or audit staff re-examination of accounting a system.


(C) establish and improve internal oversight mechanisms
In order to further strengthen the implementation of the system of internal accounting, internal accounting system should be established with the appropriate operating mechanism, namely the implementation of decision-making power, executive power, to supervise the separation of checks and balances. Should be designed first accounting organization, established at different levels different accounting organizations, followed by the establishment of internal governance, and improve the corresponding internal oversight, and strengthen external oversight, the formation of a monitoring force. internal audit or internal audit to facilitate the strengthening of the internal accounting of the monitoring and evaluation for corporate new problems, implementation of the new situation and weaknesses in time to amend or improve policies. enterprises according to their governance structures need to decide the internal audit agency affiliation, but to ensure that internal audit should be sufficient to supervise the work of transcendent authority and status.


(D) the establishment of a formal training of highly qualified accounting team
In the implementation of internal accounting system, if not responsible, competent people to perform their role will be greatly reduced, if not impossible to play its due role, so in order to maximize the role of the internal accounting system to identify and stop the kinds of irrational, non-compliance and accounting treatment of accounting irregularities in personnel, we must attach importance to the implementation of internal accounting system personnel selection, training and assessment to improve this part of the quality of personnel, accounting not only to enhance their business operations level, pay greater attention to professional ethics education, improve work efficiency.


(E) The State shall strengthen the supervision of enterprises
Authorities should increase efforts to spot checks, the problems of inspection personnel to be instructed about the rapid rectification, to formulate concrete measures to implement corrective to the person responsible for correcting the problem can be corrected immediately, to seize the perfect time to complete formalities procedures for the rectification of some of the problems being difficult to make a correction to the gradual rectification, and to take effective measures to prevent the occurrence of violations of law. accounting firms should strictly carry out their duties, abide by professional ethics and discipline the industry, to conduct an independent audit.


References:
[1] Amy <<Internal Control Design>>, Economic Management Press, 1997.

[2] Dong Huiliang <<Enterprise Accounting System Design>>, Lixin Accounting Publishing House, 2001 Links to free download http://www.hi138.com