Internal control evaluation system of listed companies

1 Theoretical significance of the construction of the internal control system of listed companies By interpreting the macro policies and establishing the norms of the internal control system, it can provide a theoretical basis for improving the construction of the internal control system of listed companies in China. Internal control is the basic rule for the operation and development of listed companies, and the production, operation and management of listed companies all start from the establishment and improvement of internal control. All activities of listed companies are based on internal control.

Study how internal control integrates various elements and resources of listed companies, organically combines and coordinates them, and makes the best use of talents and materials, so as to effectively promote the healthy and sustainable development of China's listed companies. It provides a reference for the standardization of the construction of the internal control system.

The internal control evaluation standard system of the enterprise is a management mechanism, which standardizes the operation and management activities of the enterprise, and can improve the operating efficiency and anti-risk ability of the enterprise, which not only reflects the needs of the corporate governance structure and management system of the enterprise, but also incorporates the strategic objectives of the development of the enterprise and the evaluation and incentive of performance. The establishment of a scientific and strict internal control evaluation system is not only a requirement for the implementation of the internal control system itself, but also the cornerstone of ensuring the effective implementation of the company's business strategy. However, at present, the evaluation of internal control of enterprises in China is mainly for audit services, and there are great limitations in both the evaluation content and the evaluation objectives, which restricts the effective implementation of the internal control of enterprises.

Therefore, it is imperative to establish a complete, practical and operable internal control evaluation system.

Internal control evaluation system.

1. Internal control part, including:

i) Governance structure.

2) Institutional setup and distribution of powers and responsibilities.

iii) Internal Audit.

(iv) Human resources policy.

5) Corporate culture.

2. Risk assessment part, including:

Risk identification, analysis and response.

3. Control the activity part, including:

i) Personnel.

1.Segregation of duties control.

2.Authorization approval control.

3.Human resource control.

2) Special projects.

1.Property Protection Control.

2.Accounting system control.

3.Information Technology Controls.

iii) Operations.

1.Process control.

2.Budget control.

3.Operational Analytics Controls.

iv) Emergency response.

Emergency response mechanism.

4. Information and communication section, including:

1) Information collection and transmission paths.

2) Control of information carriers.

3) Information review, feedback and processing.

5. Internal oversight component, including:

1) Supervise and inspect the establishment and implementation of internal control.

2) Evaluate whether the internal control is sound, reasonable and effective.

3) Report deficiencies, take measures to deal with them, and pursue responsibility.

It should include five aspects: "internal environment, risk assessment, control activities, information and communication, and internal control", and the internal control system can refer to the "Basic Norms for Internal Control" and the "COSO Internal Control Framework".

It has become an inevitable requirement for the internal audit work of modern enterprises to adapt to the development of enterprises by establishing and improving the standard system and system of internal control audit and evaluation of enterprises, preventing business and financial risks, improving the level of operation and management, and providing favorable guarantees for the healthy development of the national economy. This paper discusses the necessity of establishing and improving the internal control audit evaluation standard system and the corresponding measures that should be adopted, and discusses the work ideas of enterprise internal audit in establishing and improving the internal control audit evaluation standard system in enterprises in combination with the actual work.

1.How do the regulatory authorities carry out the internal control evaluation, such as what evaluation criteria are used for the evaluation, and what is the content of the evaluation? There is a lack of clarity on the evaluation methods to be used.

2.A considerable number of enterprises or individuals lack proper understanding of internal control evaluation, and lack a clear understanding of some core and basic issues of internal control evaluation, such as "why to evaluate", "what to evaluate", "how to evaluate", and "how to reflect the evaluation results".

3.It is not possible to compare the effectiveness and completeness of the internal control systems of individual enterprises.

The internal control evaluation work shall form a working paper to record in detail the content of the evaluation work carried out by the enterprise, including the evaluation elements, main risk points, control measures taken, relevant evidence and materials, and identification results.

Evaluation working papers should be reasonably designed, fully evidenced, simple and easy to operate.