Experience In Establishing Internal Control Systems In State-owned Corporations And Enterprises

Internal control plays an important role in preventing and detecting frauds in businesses, so countries are interested in, with the mechanism of setting up internal control systems at corporations and joint State karma. However, each country establishes its own internal control system in accordance with the legal hallway and the practice of socio-economic development - 00: 00/10: 43 HAPPY. Source: Internet Set up internal control systems in corporations and state enterprises in some countries in China in the period of 2008-2010, the Chinese government has issued basic standards and 3 Circular guides Internal control application (KSNB); assess internal control; Instructions for internal control in auditing. These basic standards and guidelines are mainly applied to listed companies on the stock exchange and officially effective from January 1, 2012.Theo Basic standards, internal control systems include 5 factors: internal control environment, risk assessment, control, information and communication, monitoring

. The difference of the KBNN system in Chinese corporations and enterprises (SOEs) China is a specific guide in each field (18 areas). Specific guidance for each field helps businesses easily apply. Currently, most Chinese SOEs have been equitized to increase competitiveness and enhance supervision from stakeholders
Over long period of time being patronized by the State, SOEs in China clearly revealed the weakness to be too relying on the government; Operation lacks control, while, managers' thinking towards internal control is controlling accounting activities, not much attention to human resource control, information system ... real Reformed SOEs in China showed that decentralization of management, improving the level of autonomy needed. In addition, to overcome institutional issues that are incomplete, gradually reduce the intervention of the State, China has built a Board of Directors (Board of Directors) SOEs with the majority of external members. By the end of 2018, China has sued the whole Board of Directors at 83 SOEs. At the same time, to strengthen monitoring activities from outside the enterprise, the Chinese State Property Supervisory and Management Committee conducted authorization or strong decentralization in state capital supervision management. Especially, to ensure the effectiveness of the internal control system, Chinese SOEs overcome weaknesses in accounting activities, monitoring activities and Risk assessment by receiving consultation from independent auditing. The delegation was formed by the Chinese government to overcome risks, minimize operating costs; At the same time, strengthening management efficiency, improving competitiveness. About internal financial supervision at state corporations, under the Chinese Enterprise Law, General Meeting of Shareholders, Board of Directors, Board Controls and managers are responsible for powers, decision making, control and organization of the Group
Internal financial supervision is carried out by specialized corporate financial departments and current organizational structure undertaken by the internal control department. To assess the financial supervision activities need to be checked Internal math. Internal audit is an important factor in the financial monitoring system of corporations. However, in order for the internal control department to promote the role, the corporations and SOEs need to clearly identify the relationship and responsibilities of this department with the Supervisory Board. The United States periodically in January 6 The United States Fraud Investigation Association announces a report on fraud and abuse of powers for enterprises in the public sector. The public is a method to limit fraud, but the fraud of government employees continues. Implementation of the internal control system is considered an effective tool that the US government recommends apply to all SOEs. Before implementing the internal control system, the Government indicated 5 factors affecting fraud, including: - The lack of profit incentives and no major competition in SOEs. Staff performs monitoring at missing and limited enterprises. - Managers who consider the internal control system, only focus on compliance with state laws.- in small cities, missing The Auditing Committee and the Independent Review Agencies. - The Government puts great trust in the head of the enterprise. When assessing the factors affecting fraud in SOEs, the US government focuses on governance Risks and prevent fraud through deploying internal control systems. Therefore, in addition to the application of the US National Council's Report on Fraiting Financial Report (COSO), SOEs in the US also use in conjunction with ERM (Risk Assessment System Enterprises serving administration). At state corporations, the parent company established a BOM, the Board of Directors has the right to take the company, to decide on any issues related to the identification and implementation pepper, light

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