Internal control system problems and countermeasures of Zhejiang private enterprise
ABSTRACT
Internal control has developed from original internal check to presently Internal Control – Integrated Framework, and it become more and more perfectly. Especially American whose theories are in a leading position,while our country is dropped behind American’s some decades.
Zhejiang, a province whose economic integrated competitive power on 5th in China’s provinces, and its two hundred and three enterprises are in the top five hundred enterprises over the country. However, in such a good province of private enterprise and economy situation well developed, the phenomenon of finance cheat is really serious. In top ten finance cheat cases in quoted companies, Zhejiang has two in board in 2005, which are Ningbo success information industry co.,ltd. and Zhejiang Haina science and technology co.，ltd..
Meanwhile, Zhejiang private enterprises are almost family enterprises with single property system and imperfect govern structure. And add in the internal control system’s own limitation, the internal control of Zhejiang private enterprises pay most of their attention on accounting control while overseeing the factors like control environment and absenting of person with ability and human resource , etc.
Aiming at the problems above, there are relevant resolve methods. Firstly, it’s suitable to design elastically internal control system; Besides, to change the situation of single property by innovating the property system; perfect the govern structure and strengthen the budget management; to enhance the rationality of internal control system on the basis of control environment; and to rise the literacy equality of major managers and middle-level employee by selecting excellent persons.
