By improving the corporate governance structure, a good control environment can be created, which is conducive to financial control. To improve the corporate governance structure, we should start from the following aspects: (1) Establish a system of combining internal directors with external directors. The internal directors are elected by the shareholders' meeting and are shareholders' representatives. External directors are experts with special experience, background and professional skills, which can make up for the defect that internal directors are not "directors". (2) Actively cultivate the manager market. In western countries with developed market economy, a relatively mature manager market has basically taken shape, which on the one hand provides managers with opportunities for promotion, on the other hand, it also brings the risk of being replaced. If the enterprise management effect is not good, it may become the target enterprise of M&A, so that the manager is dismissed and it is difficult to find a suitable position in the manager market. (3) Implement the system that operators hold a certain proportion of shares. The separation of management right and ownership makes the owner have to pay the cost in order to control the operator, including the expenditure of encouraging the operator, the expenditure of supervision and the loss caused by the operator deviating from the owner's goal. If the cost exceeds the cost of giving the operator a certain equity, you can choose to give the operator a certain stock option to make the operator's goal converge with the owner's goal.
Second, improve the internal audit system of enterprise groups.
Internal audit plays an irreplaceable role in corporate governance structure. An audit committee can be set up to be fully responsible for the internal audit of the enterprise, supervise the standardization of the company's operation and ensure the authenticity and reliability of financial information. The specific method comprises the following steps:
(1) Strengthen the construction of internal audit rules and regulations of enterprises;
(2) to strengthen the control of enterprise assets as the main line, establish an audit network;
(3) Evaluate the effectiveness of the internal control mechanism of subsidiaries regularly or irregularly, and supervise and improve the internal control system of subsidiaries;
(4) Conduct a single audit of some engineering projects, economic contracts and foreign cooperation projects of the company;
(5) Implement the outgoing audit system, and review and evaluate the performance of the economic responsibilities of the company's responsible subjects.
Third, improve and perfect the internal control system.
The purpose of establishing institutions and defining the responsible subjects and persons is to coordinate and manage, but effective coordination and management cannot be achieved through the personnel system, but must be completed by the legal system. As far as the financial control of enterprises is concerned, it must be completed by a perfect internal control system, not by manpower. The internal control system includes the design of the organization and all methods and measures taken by enterprises for mutual coordination and management. The purpose of these methods and measures is to protect the preservation and appreciation of enterprise property, check the accuracy and reliability of enterprise accounting information, improve operating efficiency, and urge relevant personnel to follow established management policies. The establishment of internal control system must be carried out on the basis of extensive investigation, and the established internal control system must be constantly revised and improved in the trial process, so that the internal control system is practical and operable and plays its due role.
In short, the quality of enterprise financial control is directly related to the survival and development of enterprises. To a certain extent, we can think that financial control is the core of enterprise group management, because for enterprises, control is the first, followed by income control, and the combination of the two is financial control. Therefore, enterprises must face up to all kinds of financial problems existing in enterprises, find out the crux, and further improve the financial control system of enterprise groups.
In order to improve enterprise management level and risk prevention ability, promote enterprise sustainable development and strengthen enterprise financial internal control, the construction of enterprise financial internal control system is one of the important contents of enterprise management science. The correct reflection and collection of financial information is the premise of strengthening internal control and evaluating internal performance. In order to carry out effective internal control and internal evaluation, it is necessary to correctly and reasonably construct the enterprise financial internal control system, design it hierarchically according to the power and responsibility relationship in the corporate governance structure and the content of internal financial accounting control objectives, and combine it with internal evaluation to implement it step by step, so as to realize enterprise internal financial control, improve the internal control system, and finally achieve the purpose of strengthening financial management and improving economic efficiency. This paper discusses the principles, objectives, emphases, framework and functions of establishing financial internal control system in enterprises as follows: 1. The principles of establishing financial internal control system in enterprises should be based on the Accounting Law, the Company Law, the Basic Working Standards of Accounting, the Basic Standards of Internal Control and other laws and regulations, combined with the specific situation of enterprises, so as to help enterprises effectively strengthen internal management, prevent operational risks and protect unit property. I think the establishment of enterprise financial internal control system should conform to the following principles: 1, the principle of legality. Enterprises must take national laws and regulations as the criterion, and within the scope of national rules and regulations, formulate financial internal control systems that are suitable for their own enterprises. This is the basis for enterprises to establish internal control system. In a large number of enterprises that violate laws and regulations, firstly, because they don't act according to law, and more importantly, because the internal financial control system of enterprises itself is divorced from the national rules and regulations, it is arbitrary and causes waste, which ultimately causes losses to the country and enterprises and brings adverse effects to society. 2. The principle of integrity. The enterprise's financial internal control system must fully involve all aspects of the enterprise's financial accounting work, which should not only conform to the long-term planning of the enterprise, but also pay attention to the short-term goals of the enterprise, and be coordinated with other internal control systems of the enterprise. We usually have many limitations or "shortsightedness" in our work, and we tend to handle things by ourselves and only consider problems from a financial perspective unilaterally. It leads us to lose sight of one thing and another, which conflicts with the implementation of other internal control systems, leading to the system "existing in name only". Therefore, when establishing the financial internal control system, we should grasp the overall situation and pay attention to the overall implementation effect of the enterprise. 3. The principle of pertinence. The establishment of internal control system should proceed from the reality of enterprises, aim at the weak links in enterprise financial accounting and work, and aim at the details that enterprises are prone to make mistakes, formulate effective internal control system, effectively control all links and details, and improve the level of enterprise financial accounting. At present, many of our enterprises do not have a complete set of financial accounting systems and norms formulated according to the actual situation of enterprises, which leads to weak accounting work and chaotic financial management. 4. The principle of consistency. The financial internal control system of an enterprise must be continuous and consistent, and cannot be changed at any time, otherwise it cannot be implemented. We should attach great importance to this point when formulating the internal control system of enterprise finance, and strive to make the system as continuous as possible to ensure the seriousness of accounting work. 5, the principle of adaptability. The financial internal control system should be supplemented in time according to the changes of enterprises, the development of financial accounting specialty and the development of society. Adaptability can be divided into two aspects, on the one hand, adaptability to the outside, on the other hand, adaptability to the inside of the enterprise. External adaptability means that the financial internal control system of an enterprise should adapt to the national macroeconomic development, industry development and the competitor mechanism of the enterprise. Internal adaptability refers to adapting to the strategic planning, development scale and present situation of the enterprise itself. Enterprises should grasp these two aspects, formulate timely and applicable financial internal control system, and make the financial accounting level of enterprises develop in a higher and better direction. 6. The principle of cost-effectiveness. The establishment of enterprise financial internal control system should consider the principle of cost-effectiveness, that is to say, it is reasonable to consider it from the economic point of view in the application process. The establishment of the system is to control some links and key points of an enterprise, and finally to improve the management level and increase the efficiency of the enterprise. If you violate this view, it will be more than the gain. 7. The principle of applicability. The enterprise financial internal control system should be convenient for all departments and employees to use, that is, the enterprise financial control system should be operable and practical. This is a key point in formulating financial internal control system. The adaptability of enterprise internal control system can be summarized as "standardized content, easy understanding, easy operation and flexible adjustment". 8. Development principle. To formulate the internal financial control system of an enterprise, we should give full consideration to macro policies and enterprise development, closely observe the movements of competitors, and formulate rules and regulations with developmental or future priorities. Enterprise financial internal control system is an important system of enterprises, which can promote the improvement of enterprise financial accounting level. Therefore, we should have a strategic height to lead it to a more complete development direction. Second, the establishment of the financial internal control system of the target enterprise serves the business objectives of the enterprise. In my opinion, the formulation of financial internal control system must achieve the following five objectives: 1, and ensure that business activities are carried out in accordance with appropriate authorization. 2. Ensure the correctness of all transactions, timely record appropriate accounts in appropriate accounting periods, and make the preparation of financial accounting reports conform to the requirements of relevant financial accounting systems and accounting standards. 3. Ensure that the contact and disposal of assets and records are properly authorized. 4. Make sure to check the book assets and actual deposits regularly. 5. Ensure the timeliness and accuracy of financial accounting supervision. Three. Key points and framework establishment of enterprise financial internal control system (I) Control points: In order to serve the business objectives of enterprises and control business activities, the financial internal control system must control every link and all key points. The implementation of enterprise financial department control should achieve the following points: 1. Clear management responsibilities and vertical and horizontal supervision relationship; 2. Division of responsibilities, separation of rights and mutual restraint; 3. Transaction authorization, establishing appropriate approval procedures; 4. Design and use appropriate vouchers and records; 5. Authorization of asset contact and record use; 6. Custody system of assets and records; 7. Independent audit, routine review and automatic inspection; 8. Formulate and implement appropriate accounting methods and procedures; 9. Job rotation; 10. Independent inspection, including external and internal audit, etc. (II) Establishment of framework: Under the guidance of relevant national laws and regulations, under the premise of solving the problem of establishing enterprise financial internal control system, an enterprise shall establish its own complete financial internal control system in accordance with the principles, objectives and key requirements of establishing enterprise financial internal control system. I think the internal control system of enterprise finance should include the following seven basic financial accounting control systems: (1) reliable voucher system; (2) A complete bookkeeping system; (3) Strict inspection system; (4) Reasonable accounting policies and procedures; 5. Scientific budget system; (6) Regular asset inventory system; Once the timely application of supervision and assessment system. Specifically, the framework of financial internal control system can be divided into the following five aspects: 1, basic management system (1), accounting control system: (1) accounting system; (2) Major accounting policies; (three) the name and number of the accounting subjects; (4) Instructions on the use of accounting subjects; 5] Types and formats of accounting statements; [6] Notes on the preparation of accounting statements. (2) Financial management control system: (1) Internal financial management system of the enterprise; (2) Management of monetary funds; (3) Current settlement management; (4) Inventory management; 5) short-term and long-term investment management; (6) management of fixed assets; (7) Management of projects under construction; (8) Management of intangible assets and deferred assets; (9) Management of other assets; ⑽ Sales revenue management; ⑾ Cost management; ⑿ Profit and distribution management; (13) financial accounting report and financial evaluation management; 14. loan management; ⒂ Guarantee management; 2. Integrated management control system (1) financial processing program system (basic flow of accounting, necessary procedures for handling accounting matters and specific operation specifications); (2) financial budget management system; (3) Accounting and auditing system; (4) Internal containment system (when necessary, centralized provisions should be made on internal containment and restriction procedures that need to be emphasized in accounting); 5] Property inspection system; (6) Financial analysis system; (7) Measures for the administration of accounting files; (8) Measures for the administration of computerized accounting; (9) Measures for the management of financial accounting of subsidiaries (subsidiaries) and other subordinate units. 3, financial revenue and expenditure approval report control system (1) financial revenue and expenditure approval management measures; (2) major capital expenditure approval and authorization approval system; (3) The system of examination, approval and authorization for major expenses; (4) Reporting system for major financial matters. 4, financial institutions and personnel management control system (1) financial management classification responsibility system; (2) the form of accounting organization; (3) Accounting post responsibility system; (4) internal accounting personnel management measures (including accounting post rotation management measures, accounting personnel appointment management measures, etc.). ); 5] Penalties for violating financial discipline and enterprise accounting rules and regulations; [6] Measures for the administration of accounting personnel training. 5, cost control management system (1) expense reimbursement management measures; (2) Cost accounting method; (3) Cost planning management measures; (4) cost control management measures; 5] Cost analysis management measures; [6] Management Measures for Cost Assessment. Fourth, the role of establishing the internal financial control system of enterprises. Implementing a good internal financial control system is an important guarantee for correctly handling the relationship between corporate stakeholders and improving corporate governance. Corporate governance structure is divided into external governance structure and internal governance structure. The external governance structure of the company is influenced by capital market, financing market, manager market and other factors, and the internal governance structure is influenced by the balance of rights of all stakeholders. For example, shareholders' meeting, board of directors, board of supervisors, creditors, trade unions, etc. It is an authority representing all stakeholders, and the balance of power among them constitutes an important part of corporate governance, and good internal financial control is an important means of balance of power. A sound and effective internal financial control system is beneficial to the interests of minority shareholders and can solve the problems of high concentration of equity and absence of owners. Effective internal financial control can standardize the accounting behavior of the unit and ensure the authenticity and integrity of accounting data; Plug loopholes, eliminate hidden dangers, prevent and timely find and correct errors and fraud, and protect the safety and integrity of unit assets; Ensure the implementation of relevant national laws and regulations and internal rules and regulations of the unit. In this way, many small and medium-sized investors can trust the financial information of enterprises, and investors can eliminate companies that maliciously infringe on the interests of small and medium-sized shareholders by buying and selling stocks, and implement indirect control over the companies. A sound and effective internal financial control system is conducive to the balance of power between owners and operators. For business owners, they expect to obtain real financial accounting information, objectively evaluate the operating results of enterprises, correctly estimate their financial situation, and make future investment decisions; They also hope to control the accounting policy and make it tilt towards safeguarding the interests of owners, such as implementing the principle of prudence and fully and quickly compensating the cost of fixed assets. As for operators, they may adopt the opposite accounting policy to the owners, because they don't care much about the long-term development of enterprises, because in most cases they will pay more attention to the benefits brought by short-term operating benefits. This short-term interest drive is reflected in accounting, that is, publicizing or exaggerating the entrusted operating results, covering up decision-making mistakes and operating losses, and encroaching on or damaging the interests of owners, such as confirming income in advance, not fully withdrawing expenses, and generating excessive job consumption. Sound and effective internal accounting control makes it possible to produce true and fair information. Conducive to the balance of power between the two sides. To sum up, the implementation of a good internal financial control system is conducive to the improvement of corporate governance structure, can effectively solve the internal management slack and management loopholes, and realize the effective combination of responsibility, right and benefit. It will certainly promote the orderly scientific management and benign development of enterprises.
How to establish enterprise financial control system and seven principles of internal control of financial system
1. The principle of legality means that enterprises must formulate feasible financial internal control systems within the scope of national rules and regulations according to national laws and regulations.
2. The principle of integrity means that the financial internal control system of an enterprise must fully involve the control of all aspects of the financial accounting work of the enterprise. It should not only conform to the long-term planning of the enterprise, but also pay attention to the short-term goals of the enterprise and coordinate with other internal control systems of the enterprise.
3. The principle of pertinence means that the establishment of internal control system should be based on the actual situation of enterprises, aiming at the weak links in enterprise financial accounting work, and effectively control all links and details to improve the financial accounting level of enterprises.
4. The principle of consistency means that the financial internal control system of an enterprise must be continuous and consistent.
5. The principle of adaptability means that the enterprise financial internal control system should be supplemented in a timely manner according to the changes of the enterprise and the development of the financial accounting profession and society.
6. The principle of economy means that the establishment of enterprise financial internal control system should consider the principle of cost-effectiveness, which means that enterprise financial control system should be more operational and practical.
7. Development principle, the formulation of enterprise financial internal control system should fully consider macro policies and the development of enterprises, closely observe the movements of competitors, and formulate rules and regulations with developmental or future priorities.
How to improve the internal control system of enterprise financial risk? The control and prevention of financial risks refers to a kind of financial management activity that enterprises use various means and measures to predict, prevent, control and deal with various financial risks under the premise of fully understanding the financial risks they are facing, so as to ensure the continuity, stability and effectiveness of enterprise capital movement at the minimum cost, so as to realize the established financial management objectives of enterprises. According to the management research of China Group, the improvement of financial risk control should be carried out in three aspects: first, estimate the potential of risk loss and consider the risk loss that enterprises can bear; Second, pay more attention to the probability of loss; Third, choose a reasonable risk management method to get the maximum risk management income at the lowest cost.
The significance of how to improve the financial internal control system of enterprises 1. Obstacles of enterprise financial internal control system
1. The financial management foundation is weak and the financial management function is missing.
At present, the financial management foundation of enterprises is still relatively weak, and there is still a certain gap between the financial management level and the management's requirements for financial information. For example, there are some problems in the implementation of internal control standards, audit mechanism, financial strategic management and post separation principle. Because many enterprises think that finance does not play a good role in the supervision and control of business in the actual management process, financial work is only a formality, which makes financial internal control fail to meet the expectations of management. In addition, many effective financial management and internal control tools have not been effectively used by financial managers, such as budget management and internal control objectives.
Quasi, key performance indicators, financial early warning mechanism, etc. ; Enterprise financial personnel spend a lot of time and energy collecting and sorting out financial data, accounting and preparing financial reports, but they have not played their due role in financial data classification, budget control, performance management, cost reduction and strategic management.
2. Lack of excellent management culture
The quality of enterprise managers is not high, and they do not pay attention to the construction of enterprise culture. Many enterprises ignore the construction of corporate culture, or just become a mere formality, failing to really penetrate the connotation of corporate culture into the whole process of enterprise management, and the powerful function of corporate culture cannot be fully exerted; Enterprise managers have low quality, some have high professional knowledge, but their moral level is low. Some enterprises have long-term serious nepotism, and the human touch and nepotism are too heavy, which directly affects the optimization of internal control environment of enterprises.
3. The awareness of risk assessment is relatively weak, and the internal audit of enterprises is weak.
Globalization and network informatization have brought development opportunities and risk challenges to enterprises. Many enterprises have not really established an effective risk assessment mechanism, lack risk prevention awareness, and increase business risks. Many enterprises' internal audit supervision function is not strong, they do not pay attention to budget control, and the phenomenon of over-budget investment occurs from time to time, which constitutes the weak link of internal audit work of enterprises, leading to the failure of internal audit supervision or the internal audit becoming a mere formality.
Second, improve the enterprise financial internal control system.
1. Strengthen the basic work of financial management
Perfecting the organizational structure of enterprises is the organizational guarantee for doing well the internal control of enterprises. According to the requirements of modern enterprises, a flat enterprise organization will be established, so that the organization will be more streamlined, the responsibilities will be more clear, the phenomenon of insider control will be completely eliminated, and a good competition and incentive mechanism will be formed.
It is necessary to form a mechanism of "rules to follow and laws to follow" under the improvement of various accounting management systems within enterprises, so as to make the responsibility and authorization authority of enterprise accounting responsible persons more clear. On this basis, make full use of the advanced financial management and internal control tools of enterprises, strengthen the basic work of financial management, and constantly improve the internal control information disclosure system to ensure the authenticity, integrity and timeliness of accounting information; Continuously improve the transparency of accounting information, make corporate governance and accounting control interact positively, and meet the needs of enterprises and investors for internal control information disclosure. Implement effective evaluation of enterprise internal control, so that enterprise managers can grasp the weak links of internal control in time and promote the improvement of enterprise financial internal control performance; Through comprehensive evaluation, we can find the shortcomings of the internal control system in time, and take corresponding assessment, reward and punishment measures, so as to enhance the sense of responsibility of managers at all levels of enterprises and optimize the financial internal control environment of enterprises.
2. Establish an excellent management culture
The assimilation of excellent corporate culture will make employees more consciously abide by the core values and code of conduct of the enterprise, and will also play a positive role in the financial internal control of the enterprise. Therefore, we should make every effort to create a "control culture", so that the board of directors and senior management can form a higher standard of morality and integrity through excellent cultural orientation and cohesion. In the atmosphere of excellent culture, employees' thoughts and goals will be more unified. Employees can give full play to their potential and are willing to contribute their wisdom and creativity to the development of the enterprise. Through cultural influence, employees can improve cohesion, centripetal force and sense of belonging, and finally form loyalty to the company. The effective integration of enterprise culture and internal control environment will effectively improve the control power of enterprise financial internal control.
3. Raise awareness of risk assessment and strengthen internal audit of enterprises.
We should fully understand the relationship between enterprise financial internal control and risk management, establish an organizational structure suitable for enterprise financial internal control according to the internal control principles and system framework of international norms, clarify the responsibilities of personnel at all levels, and make full judgments on internal and external risks. To establish an effective internal audit system and improve the ability to resolve financial risks, especially major risks, the regulatory authorities should check the internal control attitude of senior leaders, the relevant work of internal audit departments and the inspection results of external audits, and take effective measures to deal with non-compliance behaviors. The internal audit department should shift its focus to the effective and comprehensive audit supervision of the internal control system of operation and management, pay attention to maintaining the independence of the work, and promptly advise and urge the operation and management department to correct the control defects.
The new Basel Accord puts forward new requirements for the financial internal control of Chinese enterprises. In order to adapt to the new changes in financial internal control, this paper analyzes the obstacles of enterprise financial internal control system, and puts forward some suggestions, such as strengthening the basic work of financial management, building excellent management culture, raising the awareness of risk assessment, and strengthening enterprise internal audit, so as to improve enterprise financial internal control system and make enterprises develop healthily and continuously.
How do enterprises establish financial internal control system?
Internal control organization: internal organization is the basic guarantee of an enterprise, and the establishment of full-time internal control department is the focus of business circles. There are usually three ways to set up: method one: set up an internal control department separately. Method 2: Internal control is led by the internal audit department. Mode 3: Set up an internal control construction office during the centralized period of internal control construction.
Diagnosis and improvement of internal environment: the internal environment is the carrier of the construction and implementation of internal control in enterprises. When establishing internal control mechanism, enterprises should first diagnose and improve the internal environment. On the one hand, the improvement of internal environment can lay the foundation for the design and implementation of control activities; On the other hand, the diagnosis of internal environment can strengthen the matching between control activities and internal environment, which is conducive to the smooth implementation of control activities.
Dynamic risk assessment: risk assessment is an important embodiment of the systematic construction of internal control and an important basis for the design of subsequent internal control measures.
Design of control activities: control activities are the core elements of implementing internal control system. In the process of standardizing control activities, enterprises should form internal control policies and procedures manuals.
Information and communication run through: information and communication refers to ensuring that the right position can get the right information at the right time in the construction of internal control.
Internal supervision means that internal supervision is placed at the end of the five elements, which is the embodiment of the closed loop of internal control management.
In addition, performance appraisal emphasizes that the effectiveness of internal control construction and implementation should be included in enterprise performance appraisal to promote the implementation of internal control system.
What is the relationship between enterprise financial control and internal control? Internal control includes financial control.
How to establish and improve the internal control system of small and medium-sized enterprises? An enterprise's internal control system can only be successful if people use it well, money (tangible assets and intangible assets) and things (current assets and fixed assets) are well managed.
How to establish enterprise financial internal control system? Internal control construction must be from top to bottom, from company executives to every employee at the grassroots level. "You can seek professional help from external institutions, and you also need the cooperation and promotion of all employees."
Second, there should be continuous training and publicity within the enterprise, so that employees in the internal control department can establish a sense of service and employees in various functional departments can understand the importance of internal control.
Third, use system tools, such as audit software.