|
The internal control system of enterprise management authorities in order to improve operational efficiency and effectiveness of business activities comply with established regulations and control policies and procedures established to ensure true and reliable accounting information . With the standardization of enterprise management , as well as the enlargement of the scale of internal control is extremely important and necessary . Internal control , in order to truly understand the control environment , risk assessment , control activities, information and communication , monitoring, that is, internal control five elements -depth analysis . Is to control the environment is good or bad a direct impact on the effect of other control procedures implemented largely affect the control environment and corporate governance structure . Corporate governance is to solve the division of powers and responsibilities of the shareholders' meeting , board of directors , board of supervisors and managers , to establish a mechanism of checks and balances between them , is the first level of control . Sound , scientific, standardized governance structure will help management to establish the necessary internal control system of the economy , especially in the realization of the \Distortion of accounting information , there are many reasons , but many reasons , the internal control system is not perfect and run failure is the main reason , the imperfections of the system of internal controls the untrue and accounting procedures result in business activity occurred , the accounting method noncompliance resulting accounting information can not faithfully reflect the economic and business activities as it is . Therefore, in order to guarantee the reliability of accounting information , and to prevent the distortion of accounting information , and must start from the perfect corporate governance structure , the establishment and implementation of sound and effective internal control system , strictly from the formulation of the budget to the execution of business activities as well as accounting the control , pursuant to which the financial reporting of real help to the users of accounting information in decision-making .
|