Internal Accounting Control of Enterprise Group486.doc

internal accounting control of enterprise groupabstract: as the economy continues to develop, in the enterprise group, the internal accounting control systems is receiving increasing attention as it relates to a true enterprise accounting information, business success and failure and so on. therefore, you want to make the sustained and healthy development of enterprise groups continue, it is necessary to establish an efficient system of internal accounting controls. analysis of the enterprise group of internal accounting control system problems and put forward a number of perfect measures. key words: business groups; internal accounting system a meaning and characteristics of enterprise groups 1.1 the meaning of enterprise group enterprise group is a highly developed modern enterprises, based on the formation of a parent company subject to corporate ownership structure and production business model as a link, and a large number of businesses have formed a joint with great size and variety of philosophy organization. enterprise group generally consists of industrial enterprise groups, capital and management of enterprise groups, three types of enterprise groups, industry-based enterprise group mainly through industrial links, the various enterprises of similar products or similar industry, the resources available to integrate the enterprise as a whole between the ties. capital enterprise group is the parent holding companies to form a relationship exists between the investment and as businesses are investment relations, and therefore of capital through the establishment of enterprise groups can be from a parent of multiple subsidiaries investment and holding, and the parent company, other companies through mergers and acquisitions into a subsidiary. management of enterprise groups and industrial enterprise groups and capital enterprise group differences exist, it does not exist the relationship between controlling and being controlled, there was no relationship between the parent and subsidiary. but only by a natural person funded and as a principal investor, to multiple companies for the acquisition of equity or invested in new enterprises. 1.2 the characteristics of enterprise group enterprise group mainly of large enterprises as the core, economic, technological and business model, based on a number of companies from the joint together to form the organizational structure, with in-depth, technology developed and relatively stable. management of the enterprise within the group, both the achievement of the member enterprises independent decision-making, but also the implementation of unified leadership and hierarchical management system, enterprise groups, the scale of the strength, is a trans-regional, cross-sectoral, and even cross-border degree of diversification the enterprise integration. 2 a brief description of the internal accounting control 2.1 the meaning of internal accounting control of internal accounting control is an important component of internal control, mainly to protect the security of corporate assets to guarantee the authenticity and integrity of accounting information to make financial activities with the legitimacy and effectiveness. is to supervise the accounting and improve confidence in the quality of accounting and management efficiency an important guarantee for an enterprise management to measure the level of the key factors. 2.2 the basic principles of internal accounting controls 2.2.1 the principle of legality of internal control system should be consistent with national laws and regulations, accounting and the basic requirements and the actual situation within the enterprise. 2.2.2 the principle of full internal control system within the enterprise should play in controlling the behavior of the role of accounting officer of any corporate accounting employees can not exceed the rights of internal accounting controls. 2.3 the principle of comprehensiveness internal accounting control system should include, internal accounting work involved in the economic operations and a series of posts, and to be based on business involved in the direction of the full implementation of monitoring, feedback and decision-making to identify each link is done. 2.4 the responsibilities of clear principles internal accounting control within the enterprise should be involved, accounting positions and institutions, rational division of responsibilities between them to determine. so that the separation of duties to ensure that the different positions within the enterprise and different institutions can form a mutual supervision and mutual restraint role. 2.5 cost-effective in the implementation of internal accounting control system, to follow the basic principles of cost management to ensure that corporate cost-effectiveness at a reasonable cost to achieve the best control effect. 3 enterprise groups internal accounting control system, the specific content of 3.1 basic control based control systems are mainly targeted to carry out accounting controls, and to ensure basic accounting activities and accounting procedures can be complete and accurate records, which enable enterprises to achieve reasonable economic business. based control is the basis for other accounting controls, the ability to detect and deal with the record of accounting problems arising in the process. 3.2 disciplinary control although the basic control is a prerequisite for accounting controls, but to give it full effect, it must come from the disciplinary control over it to help. therefore, the disciplinary control is to ensure that the basis of control can give full play to the role of an effective control methods. 3.3 physical controls physical control is mainly used to protect the integrity of physical property companies to make effective use of methods. physical control of major cargo companies involved in a library and into the library procedures, so that goods can be an effective custody of the different categories of property and materials, stored in the designated warehouse. the number of goods scientific facilitate future staff made materials and inventory, establish a sound system of property inventory, such as inventory was found, it should properly be handled properly to ensure the physical integrity of the enterprise. thus, basic control, physical control and disciplinary control and relying on each other between the existence of the relationship are inseparable. the basis of control of major accounting information in order to ensure the authenticity of physical control is to ensure the security of corporate assets, while the discipline and control is the basis for the integration of control and physical control. therefore, if there was a control error, it will certainly have an impact on other controls. 4 to enhance corporate accounting control within the group need to 4.1 to achieve the strategic objectives of enterprise group to strengthen internal accounting control is the enterprise group enterprise to maximize the value of the expression within the group, as members of enterprise groups, most belong to a separate legal entity, it should implement an independent accounting systems. members can independently engage in civil activities, and undertake corresponding civil liability, there is relatively strong independence, therefore, enterprise groups, each member to maximize their value in the pursuit of the above, more than non-independent accounting departments have an advantage. in the modern enterprise system, to enable enterprises to obtain more benefits group, it is necessary to establish a comprehensive system of internal accounting controls, and includes financial accounting and management accounting, including, it can be said that the internal control of the main enterprise group embodiment, enterprise groups through a variety of control measures required for the implementation of its own objectives, requirements and expectations conveyed to regulate the conduct and behavior of all members. 4.2 enterprise group internal control can effectively improve the corporate governance structure corporate governance structure can be divided into external governance and internal management of both internal and external governance as long as the enterprise in the market of capital, financing and other factors, but the impact on the internal governance structures are more, mainly general meeting of shareholders, boards of supervisors , the council, board of directors and creditors and other stakeholders the right to existence of bodies. the right balance between them is directly related to corporate governance aspects. thus, a good system of internal accounting controls, enabling enterprise groups are better improve the governance structure to achieve the right to check and balance role. strengthening enterprise group can maintain internal accounting controls in the legitimate interests of shareholders to address the absence of the owner and a high degree of concentration of equity, and can also be balanced between the owners and operators the right to allow the board to exercise effective control. as in july 2000 the ministry of finance released the accounting for the first time a legal form of internal accounting control request in june 2001 the ministry of finance promulgated the internal accounting control practices are basic specification (trial) and internal accounting control practices monetary funds (for trial implementation) . all these indicate that chinas building of internal control has been achieved important results. 4.3 the implementation of the relationship between centralization and decentralization, in the enterprise group, the centralization and decentralization are important system in the enterprise development is one of the processing and improve the decision-making power means. centralized decision-making power is mainly vested in the upper enterprises, while the decentralized focus on companies lower, and between centralization and decentralization, relying on each other exist, among them the most crucial and decisive factor is the separation of powers. decentralized way through decentralized decision-making sure to see the number of ongoing projects, the number of degrees of freedom, and also the need for appropriate authorization, internal control and budgetary control reports, etc. to implement. thus, you want to correctly handle the relationship between centralization and decentralization, must be based on sound on the basis of internal accounting control system. 5 enterprise group of internal accounting control system problems 5.1 enterprise group budget system inadequate the enterprise group, the establishment of budget management is the overall strengthening of internal management of enterprises is one important way. however, as some enterprise groups did not establish their own budget management system, and some enterprise groups established a budget management, but no effective use of the total neglect of the importance of budget management. budget management have not been enterprise group as their production and management based on random changes to the budget structure, so that budget management non-existent, and thus the financial oversight mechanisms within the enterprise impact assessment system to weaken. some enterprise groups, although the introduction of budget management and budget, however, unscientific way, the lack of effective budgetary basis and measurement standards, making the budget indicators and falls far short of the actual situation of enterprise groups, so that the establishment of enterprise groups have lost the budget management system should have the significance. 5.2 enterprise group within the current inefficient use of funds, and some enterprise groups have been decentralized management of funds and the implementation of centralized management, disturbing the fund management business group of the conflicts to a certain extent, the formation of the problem of low utilization of funds. some of the funds a large number of enterprise groups have been idle and precipitation, while others are still under tight financial situation, everywhere, to bank loans, thereby reducing the financial stress and high bank lending last seen, the financial cost of stress shortage. reposted elsewhere in the paper for free download http:/ 5.3 enterprise groups leadership the lack of understanding of internal accounting control systems as enterprise group is a large-scale organization in the implementation of internal accounting controls, not only to consider the status of the parent company must be considered a subsidiary. therefore, you want to set a good corporate group control system of internal accounting system, it is necessary to attract a large number of human and material resources, but also possess the necessary economic base. but many leading business groups that if consume a large amount of manpower, material and financial resources to the implementation of internal accounting control system, the last is no guarantee can be recovered in full, then it could suffer the economic benefits of enterprise groups. therefore, the number of enterprise groups, the implementation of the internal control system led to the conservative attitude, not trying to learn, lack of an effective initiative, we can see that the leadership of enterprise groups, the system of internal accounting controls sufficient understanding of internal accounting system can not be effectively the implementation of key factors. 5.4 the enterprise group is generally low professional quality accounting personnel as the enterprise group in which the industry characteristics, resulting in an internal accounting staff in the professional quality of service, both have different differences. accounting personnel engaged in grass-roots work experience in the work are relatively rich in some, but they have work experience is often associated with the new accounting standards inconsistent with the provisions of the existence, therefore, in the corporate accounting staff have not yet fully understand the new accounting guidelines, to perform companies some financial problems, a serious constraint to the enterprise group is bound to the internal control system implementation. 5.5 a serious loss of state assets at present, because the enterprise group imperfect internal accounting control system, resulting in a serious drain on the status of state-owned assets were frequent occurrences. this is not only to the national economy have suffered and gave a number of lawless elements opportunity, loss of state assets completely upset the normal operation of the direction of the national economy, disrupted the integrity of transactions between enterprises principle. therefore, enterprises should strengthen the groups internal accounting control system, a comprehensive loss of state assets to be effectively controlled, thus showing a state-owned assets to maximize the effects of the economy. 5.6 enterprise group a lack of internal supervision system today, many enterprises in the financial management group there are some loopholes in the implementation of enterprise groups, the internal oversight system is the internal audit department. from the enterprise group as a whole, the internal audit mechanism in inadequate, narrow the field of auditing and other characteristics, because most of the audit department by a fixed high-level administrator, therefore, the lack of internal independence and authority. another enterprise groups, inadequate attention to the internal audit department, randomness strong, leading to the internal audit departments in the enterprise groups share of weighty enough not exist. internal control for the whole sector, in the whole control process is not effective sorting, in the testing and implementation is only a formality. from the external oversight, the enterprises are implementing system of appointing, as most of the accounting personnel appointed by the senior management personnel management and distribution, therefore, external oversight mechanisms of the enterprise groups, did not play any of the supervisory role. this shows that the enterprise group of imperfect internal oversight mechanisms will lead to loopholes in financial management, accounting information distortion may also occur, accounting personnel, create false accounts and other phenomena, therefore, to establish and perfect the internal accounting control system of enterprise groups is a priority. 6 strengthening the enterprise group of internal accounting control measures 6.1 to strengthen budget management enterprise group enterprise groups according to their own actual situation, the establishment of specific responsibilities, and the system specification and implementation of a strict overall budget management system and to mobilize the participation of personnel across the enterprise. the enterprise groups budget management as to ensure sustainable development of enterprise and enhance the management level, strengthen internal controls and effective means of implementation of budget management should be to achieve the groups profit maximization as the goal, and effective control over internal costs, in order to achieve the groups human resources enterprise ,