How to improve the internal control system

Internal control system of social and economic development to a certain stage of the product, is a modern business management is an important component of all forms of enterprise internal management control in general. Generated by the internal control system is based on the needs of production and operation management. The purpose is to help the business activities of a more streamlined, and the economy, efficiency and effectiveness of; to ensure the implementation of management decisions; to maintain the security of assets and resources; to ensure the accuracy and integrity of accounting records and to provide timely, reliable financial and management information. Therefore, the establishment of the internal control system at all levels of management on the protection of the safety and integrity of the unit of property to ensure the accuracy and reliability of accounting data to ensure the country's financial discipline and guidelines set by the unit, policy implementation and improve operational efficiency important. in the information industry has developed in today's society, and constantly improve the internal control system, you can prevent fraud, reduce losses and improve the capital's regeneration. Therefore, this article on how to improve the internal control system on the following views:
I. Legislative and legal responsibility should be to strengthen the Research, focusing on the government to promote the enterprises to establish the role of internal control
Internal control from the development of Western history, in addition to its own internal management factors, the government role in promoting the key factor. Our government from the 90's from the 20th century, started to increase on the internal control role in promoting .1997 May promulgated by the People's Bank of China <<strengthening of financial internal control guidance Policy ">, is the first one on the internal control system of the administrative requirements. At present, China-related payment rate system are made on the internal control system related regulations or requirements. For example, in 2001 the implementation of the <"Accounting Law Company Law >>,<< >>,<< modern system of state-owned enterprises to establish and strengthen the management of the basic norms>> Laws and regulations, etc., are clearly requires that each unit should be established, perfecting the system of internal accounting supervision system of internal control system for the establishment of a sound legal system has laid a foundation; the internal control system to regulate the establishment and implementation of the China Securities Regulatory Commission in November 2000, issued a <"Publicity release information on securities firms Disclosure and Presentation Conditions>> Ministry of Finance in June 2001, published <<Internal Accounting Control Standards - Basic Standards (Trial)> "and" <Internal Accounting Control Standards - Monetary Funds (Trial)>>, which issuance and implementation of norms for strengthening internal oversight, rectifying and standardizing the order of the socialist market economy, have a great significance, is to regulate the internal control of the beginning of a strong will to promote the development of internal control.

Second, strengthen internal control of the construction of the internal environment
The integrity of internal control contains two meanings: one is the need of production and operation enterprises should set up internal control have been set; the other hand, refers to the production and management activities of the whole process from beginning to end control. Integrity is the general standard of internal control evaluation of a primary, but also the basis for other general standards. If the integrity of internal control are not, then the rationality and internal control effectiveness impossible.

(A) to strengthen internal control, should regulate the sector, all sectors, functions and powers of all posts
Deal with clearly defined responsibilities and procedures of economic business methods, and the whole process of dealing with the business or important links are provided two or more people share the responsibility; a clear division of assets and custody of records and internal control provisions money, pipe material, pipe restrictive relationship between personnel accounts; clearly defined to ensure that the accounting vouchers, accounting records, the completeness and correctness; clearly defined to establish an inventory of property accounting information system and computer system operation.

(B) to highlight the internal control the human factor in the important position of the internal control
According to international practice and the requirements of auditing standards, internal control, including control environment, accounting systems and control procedures for the three constituent elements. Controlled environment is a unit of an atmosphere of internal controls that management's emphasis on internal controls. control the environment as part of the internal control, expanding the scope of control, particularly control of the management attitude and awareness of the internal control environment as the primary content, a more prominent factor in human internal control in an important position.

Links to Research Papers Download http://www.hi138.com as living factors, on the one hand, the key to success depends on internal control the level of quality staff. Enterprises must pay attention to the selection of management personnel to develop a good employment policy, rigorous recruitment process, the absorption capacity of the officers have a higher internal control system to ensure that play a role in the internal control system. On the other hand, business managers control of the conscious awareness of internal control and internal control of behavior is more critical to implement or not factors. Also, to determine agency managers and accounting personnel the accounting relationship between the constraints, but also to ensure that the key factor of internal control. the only way possible to create internal mutual supervision and mutual checks of internal control mechanisms.

(C) the enterprise must give full play to the role of internal audit
Enterprises to strengthen the internal audit is a basic system of internal control measures, internal audit responsibilities include not only the audit accounting records, including audit, evaluation and audit of internal control systems perform the functions of the internal efficiency of organizations, top management proposed by the enterprise report, thus ensuring a more complete internal control system and strict.

Third, the establishment of the internal control mechanism of external supervision and restraint
Because of internal accounting control system itself and man-made factors, the inherent limitations, enterprises can establish a sound internal control system and be implemented effectively, it must rely on external oversight. Units of internal accounting supervision, supervision of government departments, social constitute a compliance monitoring requirements of the socialist market economy, accounting supervision system of the Trinity, in which government departments, social auditing and internal control oversight in the case of the external supervision and restraint mechanisms.

(A) increase the social supervision of the forensic services
CPA audit is an important part of social supervision, certified public accountants of internal control evaluation report is a sign of the level of corporate credibility assessment, which urge the accounting entity and the social image from starting their own interests, consciously implement internal controls. Accountancy firms have active system of internal control consulting work for the enterprises to establish and implement internal controls to provide human, technical and other support and services to facilitate the effective implementation of the internal control system.

(B) strengthen the Government's supervision and strict enforcement mechanisms
Supervision of government departments have authority in the accounting supervision, accounting and finance departments, as the competent authorities, should be according to Law to promote the construction and implementation of internal control. On the one hand, to correctly perform the duties under the Law, relying on the authority of government oversight, comprehensive use of administrative, economic and legal means, to increase efforts to punish, out of control due to internal control problems caused, shall be held responsible managers; the other hand, the financial sector should coordinate the audit, tax, banking, securities regulation and insurance regulatory departments shall conduct supervision and inspection of internal control, promotion of internal control together to create a good environment for effective implementation.

Establish a sound internal control system must rely on state enterprises and the community's efforts to create an atmosphere of internal control, on the one hand by the Government or the authority of the department of internal control standards, on the other hand want to make a mandatory audit of internal control arrangements, from start the internal environment and external environment, and effectively establish an effective internal control system.

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