Internal Control (Management Department) Detailed Data Collection

The classic definition of internal control abroad is ASB. 1972, the American Auditing Standards Board (ASB) made the Announcement of Auditing Standards, which followed the route of the Securities Exchange Law for research and discussion, and put forward the following definition of internal control: "Under certain circumstances, internal control refers to various restrictions and adjustments implemented within the unit in order to improve operating efficiency, fully and effectively obtain and use various resources, and achieve established management objectives.

Basic Introduction Chinese Name: Internal Control mbth: Internal Control Time: 1972 Works: Announcement Basis of Auditing Standards: Securities Exchange Law Control Definition, Internal Control Background, Importance, Internal Control Benefits, Internal Control Points, Control Elements, Basic Structure, Precautions, Process Control, post supervision, Development Stage, Seven Principles, Control Functions, Types, Internal Accounting Control, and so on. Internal control construction, internal control principles, ten major issues, control measures, general methods, contents, relevant qualifications, and definition of control The so-called internal control refers to the efforts made by a unit to achieve its business objectives, protect the safety and integrity of assets, ensure the correctness and reliability of accounting information, ensure the implementation of business policies, and ensure the economy, efficiency and effectiveness of business activities. Internal control background In internal control management, have you ever encountered the following situations: when the financial department approves the travel expenses or entertainment expenses of the sales department, it always hears the sales staff complain that the audit is too strict, and we are ahead, but you are holding us back. In the process of bidding for suppliers, the purchasing department thinks that everything is done in accordance with the rules and regulations of the purchasing department. How can the selected supplier be delayed when he arrives at the legal department or the management department? The management of the company talks about risk every day. Why do employees have no concept of risk? Whether leaders are alarmist or not, risk management and control is a matter for leaders. The system has been integrated and the process has been updated, but in the process of implementation, it feels more troublesome and takes more time than before. There must be many similar puzzles and problems, which are closely related to the internal control and risk management system of enterprises. Importance "The more meetings, the longer the process and the more departments involved. Is the risk really getting smaller and smaller? " "What's the use of spending time discussing the normal process if every approval always goes into the exception management procedure?" "Is the internal control department a document manufacturing machine? If one thing is to be embodied in several documents, but it is actually only embodied in one document, even if we are willing to do it, how can we do it? " The Linked-F research of Platinum Consulting shows that the internal control departments of multinational enterprises are often challenged by various business departments. Polly thinks that how to explain internal control to the business department is the key to do it well. The first step of the internal control department is to establish a correct internal control concept for the business department and clarify the performance difference between the business department and the internal control department. Division is to lead enterprises to achieve business objectives with high quality and high efficiency, and to maximize value. This goal is the independent goal of the enterprise, and it is the pressure you give yourself. The measures it has achieved are all positive measures, in order to lead enterprises to realize the maximization of enterprise value efficiently. On the other hand, internal control is imposed on us from the outside. It requires everyone in our enterprise to do what should be done in the right way, instead of using your wisdom and ability to maximize the value of the enterprise by hook or by crook. In this sense, the goal of internal control is mandatory and its measures are defensive. Therefore, COSO (an organization initiated by the American Anti-Fraud Financial Reporting Committee) wrote in the report, "No matter how good the internal control system is, it can't turn a management with poor records or no business intelligence into a management with rich experience, brains and abilities." Therefore, his role is not wisdom and ability, but to accomplish what the outside world forces him to accomplish, provided that the enterprise achieves its main goals. It is a defensive measure, emphasizing an obligation and responsibility that must be done, rather than wisdom and ability. Platinum Consulting Internal Control Seminar Internal Control Profits Master advanced theories such as internal control, risk management, professional fraud and internal audit, master the method of quickly diagnosing internal control defects of enterprises, evaluate the internal control effect and improve it, and enhance the management's ability of self-evaluation of internal control. Establish an effective internal control environment and clarify how to combine the characteristics of enterprises and establish an internal control system suitable for enterprises. Through typical cases in enterprise operation, help students to clarify the control points, control standards and control methods in major business activities. Analysis of common reasons for the lack of internal control in enterprises.

Comprehensive introduction of internal control related theories.

Control environment

The Essence of Internal Control —— Risk Management

Internal control activities

Brief introduction of internal audit

The establishment and implementation of internal control control elements An enterprise should include the following elements to establish and implement effective internal control: (1) Internal environment. Internal environment is the basis for enterprises to implement internal control, which generally includes governance structure, organizational setup and distribution of rights and responsibilities, internal audit, human resources policy, corporate culture and so on. (2) Risk assessment. Risk assessment refers to the timely identification and systematic analysis of risks related to the realization of internal control objectives in business activities, and the reasonable determination of risk response strategies. (3) control activities. Control activities refer to enterprises taking corresponding control measures according to the results of risk assessment, so as to control risks within an acceptable range. (4) Information and communication. Information and communication refers to the timely and accurate collection and transmission of information related to internal control in order to ensure effective communication between enterprises and the outside world. (5) Internal supervision. Internal supervision refers to the supervision and inspection of the establishment and implementation of internal control, evaluation of the effectiveness of internal control, discovery of internal control defects, and timely improvement. The basic structure includes three aspects: control environment, accounting system and control procedures. Generally speaking, the internal control system of enterprise funds can be divided into three parts: pre-prevention, in-process control and post supervision. Matters needing attention 1. Enterprises need to establish a set of strict internal control rules and regulations, including the Measures for Financial Management of Enterprises, the Interim Measures for Budget Management of Enterprises, the Measures for Management of Capital Plans and the Measures for Management of Authorization and Approval of Enterprise Funds. In the process of enterprise fund management, it is necessary to reasonably set up functional departments, clarify the responsibilities of each department, carry out their duties, and establish a system of financial control and separation of functions. Fully consider incompatible responsibilities and separate checks and balances. Various departments and posts form a pattern of mutual restraint and mutual supervision. In addition, enterprises should also establish strict examination and approval procedures and authorization examination and approval systems to reduce some unnecessary expenses. Clarify the approval method, authority, procedures, responsibilities and related control measures of fund business approvers, and stipulate the scope of responsibilities and work requirements of fund business managers. Process control is mainly embodied in ensuring the safety, integrity, legitimacy and effectiveness of monetary funds. Its scope includes controlling cash, bank deposits, other monetary funds and bills receivable and payable. The main methods are: accounting inventory control, inventory limit control, physical isolation control and so on. In the process of fund management in post supervision, besides prevention in advance and control in the process, the post supervision of funds is also an essential link. In each accounting period or after the completion of each major economic activity, the internal audit and supervision department shall audit all economic business activities in accordance with effective supervision procedures, and timely discover the loopholes and weak links of internal control; All functional departments should also feed back the information of fund changes in their own departments during the accounting period or after the end of economic activities to the fund management department in time, so as to know whether the fund raising and demand are consistent, whether the fund structure and proportion are consistent with the plan or budget, whether the credit policy of products is strictly observed, whether the inventory control is consistent with the indicators, whether the users, money and materials are consistent with the plan or budget, and whether the production of products is reasonably arranged according to the plan or budget. This not only ensures the appropriateness and scientificity of fund management objectives, but also can take adjustment measures at any time according to the actual feedback information, thus ensuring that fund management is more scientific, reasonable and effective. At the same time, the fund management status of each department should be linked to the performance indicators of the department, so as to combine the responsibility, right and benefit of fund management, mobilize the enthusiasm of the fund management department and employees, and manage funds better. The internal control in the development stage is the inevitable product of social and economic development, which is constantly enriched and developed with the intensification of external competition and the need to strengthen internal management. Throughout the development of internal control theory, it has gone through the following six stages: 1, internal containment stage 2, internal control system stage 1936. The United States promulgated the Audit of Financial Statements by Independent Public Accountants, which defined internal control for the first time: "Internal audit and control system refers to various measures taken to ensure the safety of cash and other assets of the company and check the accuracy of accounting records. 1973 explains the definition of internal control system as follows: "Internal control system is divided into internal accounting control system and internal management control system. The internal management control system includes, but is not limited to, the plan of the organizational structure, and the procedures and records of the decision-making steps of matters approved by the management department. The accounting control system includes the organizational structure and the design of various measures directly related to property protection and the reliability of financial accounting records. "3. Accounting Control Management Control Stage (1) Internal accounting control (2) Internal management control 4. Internal control structure stage 5. Internal Control Integration Framework Stage1September, 1992, COSO Committee put forward the report "Internal Control-Overall Framework". The framework points out that "internal control is a process that is influenced by the board of directors, management and other personnel of the enterprise to provide reasonable guarantee for achieving the objectives of operating efficiency, reliability of financial reports and compliance with relevant laws and regulations. At the end of 1996, the US Audit Committee approved COSO's research results and revised the corresponding audit announcement. 6. Risk management framework stage In 2004, COSO Committee issued the enterprise risk management-integration framework. The Integrated Framework of Enterprise Risk Management holds that "enterprise risk management is a process, which is implemented by the board of directors, management authorities and other personnel of the main body, and is used to formulate strategies and run through the enterprise, aiming at identifying potential problems that may affect the main body, managing risks to keep it within the risk capacity of the main body, and providing reasonable guarantee for the realization of the main body's goals. "This framework expands internal control and pays more attention to the broader field of enterprise risk management. The risk management framework includes eight elements: internal environment, goal setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. Seven principles 1. The principle of legality means that enterprises must formulate feasible financial internal control system 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. Control function Internal control mainly refers to internal management control and internal accounting control, and the internal control system helps enterprises achieve their own business objectives. With the establishment of the socialist market economic system, the role of internal control will continue to expand. At present, it mainly plays the following roles in economic management and supervision: 1. Improve the accuracy and reliability of accounting information. In order to effectively manage and operate enterprises in the ever-changing market competition, decision makers must grasp all kinds of information in time to ensure the correctness of decision-making, and try their best to improve the accuracy and authenticity of the obtained information through control means. Therefore, the establishment of internal control system can improve the accuracy and reliability of accounting information. 2 to ensure the smooth progress of production and business activities. The internal control system can effectively control the smooth progress of the production and business activities of the unit, prevent deviations, correct mistakes and drawbacks, and ensure the realization of the business objectives of the unit by determining the division of responsibilities and strictly implementing various procedures, systems, technological processes, examination and approval procedures, inspection and supervision methods, etc. 3. Protect the safety and integrity of enterprise property. Property and materials are the material basis for enterprises to engage in production and business activities. Internal control can control the income, expenditure and balance of monetary funds and the purchase, acceptance, storage, requisition and sale of various property and materials through appropriate methods, prevent illegal acts such as corruption, theft, abuse and destruction, and ensure the safety and integrity of property and materials. 4. In order to ensure the implementation of the established policies of enterprises, the decision-makers of enterprises should not only formulate management policies, policies and systems, but also pay close attention to their implementation. Internal control can urge all employees to implement the established guidelines, policies and systems through methods, examination and approval, supervision and inspection, and at the same time, it can urge enterprise leaders and relevant personnel to implement the national guidelines and policies, and conscientiously implement the established guidelines of enterprises on the premise of abiding by national laws and regulations. 5. Audit supervision must be based on true and reliable accounting information, check errors, expose shortcomings, evaluate economic responsibilities and economic benefits, and provide a good foundation for audit work. Only with a complete internal control system can we ensure the accuracy of information and the authenticity of data and provide a good foundation for audit work. In short, a good internal control system can effectively prevent the waste of various resources and errors, improve the efficiency of production and management, reduce the cost of enterprises and improve the economic benefits of enterprises. The internal control system focuses on strict accounting management, designing a reasonable and effective organizational structure and job division, implementing standardized business processing procedures, and defining job responsibilities. According to its scope of action, it can be roughly divided into the following two aspects: internal accounting control, which directly involves all aspects of accounting matters, mainly refers to various accounting treatment procedures and control measures formulated by accounting departments to prevent illegal acts such as embezzlement of property and protect the safety of enterprise property. For example, a third party that has no right to manage cash and issue checks prepares a bank deposit reconciliation statement every month, which is an internal accounting control. Through this control, the reliability of accounting business, accounting records and accounting statements of cash transactions can be improved. Internal management control The scope of internal management control involves all departments, levels and links of enterprise production, technology, operation and management. Its purpose is to improve the management level of enterprises and ensure the implementation of business objectives and related policies. For example, personnel management and technical management within enterprise units belong to internal management control. The objectives of internal control are based on the Basic Standards for Internal Control of Enterprises (No.7 [2008] of the Ministry of Finance). Internal control includes five major objectives: reasonably ensuring the legal compliance of enterprise management, asset safety, truthfulness and completeness of financial reports and related information, improving operational efficiency and effectiveness, and promoting the realization of development strategies of enterprises. Reporting objective: Reliability management of internal and external reports Objective: Properly deal with risks, promote the efficiency and effectiveness of operation (provide reasonable guarantee for the realization of enterprise objectives) Compliance objective: Internal control of laws, regulations and business practices. Establishing enterprise internal control is an important means of modern enterprise management. The effectiveness of internal control is directly related to the success or failure of enterprises. The implementation of effective internal control system in enterprises is helpful to promote enterprises to expand production and improve economic benefits. Here's a brief introduction to how enterprises establish internal control system: 1. Perfecting management regulations and company system The internal control of enterprise management largely depends on the supervision of rules and regulations, and the intensity of supervision is related to the relevant laws and regulations promulgated by the state and the system formulated by the company. Therefore, national laws need to clarify the rights and responsibilities in financial management of various industries, severely punish illegal acts, and constantly improve various rules and regulations to speed up the effective implementation of various management; Enterprise managers need to clarify the job responsibilities and requirements of each position to ensure the smooth implementation of work and management. 2. Organizational control Organizational control includes organizational setting, scientific division of labor, departmental post responsibility system and personnel quality control. When setting up internal organizations, enterprise managers should consider both the needs of work and the needs of internal control, so as to make the organization setting fine and reasonable. Therefore, the internal organizational structure and division of responsibilities of enterprises should have an overall plan. 3. Budget control Budget control is an important part of internal control, which can cover the whole process of business activities, including financing, procurement, production, sales, investment and many other aspects. Therefore, the budget control of enterprise managers is the overall annual revenue and expenditure plan for business, funds and finance in order to achieve the established goals of enterprises. 4. Risk prevention and control In the market economy, enterprises will inevitably encounter various risks, so in order to prevent and avoid risks, enterprise managers should establish a risk assessment mechanism. Common risk assessment contents of enterprises include financing risk assessment, investment risk assessment and credit risk assessment. 5. Property preservation controls that all kinds of property and materials of the enterprise can only be contacted or disposed of after authorization, so as to ensure the safety of assets. The main contents are: (1) Restrict access to assets. Only personnel authorized and approved by the enterprise manager can touch cash, other assets that are easy to realize, inventory assets, etc. (2) Conduct physical inventory on a regular basis. Enterprise managers should establish a regular asset inventory system, investigate the inventory differences, analyze the reasons for the asset inventory losses and investigate the responsibilities. (3) Property insurance. By insuring assets, enterprise managers increase the chances of compensation for physical damage, thus protecting the safety of physical objects. Principles of Internal Control Enterprises should follow the following principles when establishing and implementing internal control: (1) The principle of comprehensiveness. Internal control should run through the whole process of decision-making, implementation and supervision, covering all businesses and matters of the enterprise and its subordinate units. (2) the principle of importance. Internal control should focus on important business matters and high-risk areas on the basis of comprehensive control. (3) the principle of checks and balances. Internal control should restrict and supervise each other in governance structure, organizational setup, power and responsibility distribution, business processes, etc., while taking into account operational efficiency. (4) the principle of adaptability. Internal control should be adapted to the business scale, business scope, competition and risk level of the enterprise, and be adjusted in time with the changes of the situation. (5) The principle of cost-effectiveness. Internal control should weigh the implementation cost and expected income to achieve effective control at an appropriate cost. Top ten problems 1. The cashier receives the bank statement and prepares the bank reconciliation statement. 2. Leading the "one move" examination and approval, lacking perfect internal control system and process guarantee. 3. Too much dependence on business personnel, enterprise resources are in the hands of individuals, and enterprises lose control of business development. 4. There are many descriptive things about the internal control system, but there are few clear flow charts and supporting tables. 5. There are many "fire-fighting" internal control systems, which lack systematicness and integrity, and even have multiple political affairs and fight with each other. 6. When employees are on temporary leave or on business trip, there is no clear work handover system. 7. Pay attention to the written test and interview when recruiting personnel, ignoring the background investigation. Background check is not difficult to find. 8. There is no compulsory rotation or paid vacation system for key positions. 9. Too much emphasis on cost control, efficiency is often used as a reason to weaken or surpass internal control. 10. Say one thing, do another, and detonate the system. Control measures The core of enterprise internal control is control activities, which is a method and means for enterprises to ensure the realization of internal control objectives according to the results of risk assessment and combined with risk coping strategies. Internal control measures of enterprises usually include risk control, incompatible post separation control, authorization approval, accounting system control, property protection control, budget control, business analysis control and performance evaluation control. Enterprises should combine the results of risk assessment with the methods of manual control and automatic control, preventive control and discovery control, and adopt corresponding control measures to control risks within an acceptable range. 1, risk control. Risk control requires all units to establish risk awareness, establish an effective risk management system for each risk control point, and comprehensively prevent and control financial risks and operational risks through measures such as risk early warning, risk identification, risk assessment, risk analysis and risk reporting. 2. Separation control of incompatible posts. The control of the separation of incompatible posts requires the principle of separation of incompatible posts within the unit, reasonable setting of accounting and related posts, clear responsibilities and authority, and formation of a balance mechanism. It mainly includes: authorization approval, business handling, accounting records, property custody and audit inspection. 3. Authorization approval control. Authorization approval control requires units to clearly define the scope, authority, procedures and responsibilities of authorization approval involving accounting and related work. Managers at all levels within the unit must perform their duties within the scope of authorization, and the handling personnel must also handle business within the scope of authorization. 4. Accounting system control. Accounting system control requires the unit to formulate an accounting system suitable for the unit according to the Accounting Law and the national unified accounting system, clarify the procedures for handling accounting vouchers, accounting books and financial accounting reports, establish and improve the methods for keeping accounting files and handing over accounting work, implement the post responsibility system for accounting personnel, and give full play to the accounting supervision function. 5. Budget control. Budget control requires units to strengthen the management of budget control, implementation, analysis and assessment, clarify budget items, establish budget standards, standardize budget preparation, approval, release and implementation procedures, timely analyze and control budget differences, and take improvement measures to ensure budget implementation. Budget funds are subject to the approval of the person in charge, and funds above designated size are subject to collective approval. Strictly control the capital expenditure without budget. 6. Property preservation control. Property preservation control requires the unit to limit the direct contact between unauthorized personnel and property, and take measures such as regular inventory, property records, account verification and property insurance to ensure the safety and integrity of all kinds of property. 7. Internal reporting control. Internal reporting control requires units to establish and improve the internal reporting system, comprehensively reflect economic activities, provide important information in business activities in a timely manner, and enhance the timeliness and pertinence of internal management. 8. Automatic control of the system. Today, with the rapid development of information technology, most enterprises have their own information systems, so we should try our best to use system automatic control instead of manual control. The reason why the internal control system cannot be effectively implemented is 1. The system itself is unreasonable or too idealistic, or with the emergence of new situations, the original system can not adapt but has not been revised in time, which makes the system inoperable and naturally will not be implemented; 2. Lack of mechanism to ensure the implementation of the system. Some units have neither inspected and supervised the implementation of internal control, nor have corresponding rewards and punishments measures. It is not surprising that the internal control system has become a decoration on the wall and a dead letter. Therefore, on the one hand, enterprises need to improve the operability of the system, on the other hand, they need to strengthen the execution of the system, and they cannot make the system for the sake of the system. General methods The general methods of internal control usually include division of responsibilities control, authorization control, examination and approval control, budget control, property protection control, accounting system control, internal reporting control, economic activity analysis control, performance evaluation and control, information technology control and so on. 1, division of responsibilities control, requires that functional departments and posts should be reasonably set up according to the enterprise's objectives and functional tasks and the principles of scientificity, simplicity and efficiency, and the responsibilities of each department and post should be clearly defined, so as to form a working mechanism that is convenient for assessment and mutual restraint. In the process of determining the division of responsibilities, enterprises should fully consider the checks and balances of incompatible separation of responsibilities. Incompatible duties usually include: authorization approval, business handling, accounting records, property custody, audit inspection, etc. 2. Authorization control requires enterprises to clarify the scope of authority, examination and approval procedures and corresponding responsibilities of various departments and posts in handling economic business and matters according to the division of responsibilities. Managers at all levels within the enterprise must perform their duties within the scope of authorization, and enterprise managers must handle business within the scope of authorization. 3. Audit and approval control requires all departments and posts of the enterprise to audit and inspect the authenticity, compliance, rationality of relevant economic business and matters and the integrity of relevant materials in accordance with the prescribed authorization and procedures, and sign opinions, signatures or seals, and make decisions on approval, disapproval or other treatment. 4. Budget control requires enterprises to strengthen the management of budget preparation, execution, analysis and assessment, clarify budget items, establish budget standards, standardize budget preparation, approval, release and execution procedures, timely analyze and control budget differences, and take improvement measures to ensure budget execution. 5. Property protection control requires enterprises to limit the direct contact and disposal of property by unauthorized personnel, and take measures such as property record, physical storage, periodic inventory, account verification and property insurance to ensure the safety and integrity of property. 6. Accounting system control requires enterprises to formulate an accounting system suitable for their own enterprises according to the Accounting Law of People's Republic of China (PRC), the Accounting Standards for Business Enterprises and the unified national accounting system, clarify the handling procedures of accounting vouchers, accounting books, financial accounting reports and related information disclosure, standardize the selection criteria and examination and approval procedures of accounting policies, establish and improve the methods for keeping accounting files and handing over accounting work, implement the post responsibility system of accounting personnel, and give full play to the accounting supervision function. 7. Internal reporting control requires enterprises to establish and improve the internal reporting system, clarify the procedures for the collection, analysis, reporting and processing of relevant information, provide important information in business activities in a timely manner, fully reflect economic activities, and enhance the timeliness and pertinence of internal management. Internal reporting methods usually include: routine report, real-time report, special report, comprehensive report and so on. 8. The analysis and control of economic activities requires enterprises to comprehensively use information such as production, purchase and sale, investment and finance, and use methods such as factor analysis, comparative analysis and trend analysis to regularly analyze the business management activities of enterprises, find out the existing problems, find out the reasons, and put forward suggestions and countermeasures for improvement. 9. In terms of performance evaluation and control, enterprises are required to scientifically set up a performance evaluation index system, evaluate the current performance of various departments and employees against performance indicators such as budget indicators, profit levels, return on investment, and safety production targets, honor rewards and punishments, and strengthen incentives and constraints for all departments and employees. 10, information technology control, requires enterprises to establish an information control process suitable for their own business management, improve business processing efficiency, reduce and eliminate human manipulation factors, and at the same time strengthen the control of computer information system development and maintenance, access and change, data input and output, file storage and preservation, network security and other aspects to ensure the safe and effective operation of information systems. 1 1. Internal control related to financial reporting is defined as a process, which is designed and supervised by the company's CEO and CFO or similar personnel, and implemented by the company's board of directors, management and other relevant personnel; In order to provide a reasonable guarantee for the reliability of financial reports and whether the preparation of publicly disclosed financial reports conforms to generally accepted accounting standards. This process includes the following policies and procedures: the company's relevant records correctly and fairly reflect the company's records of transactions and asset disposal to a reasonable extent.

The company's records of relevant transactions can provide reasonable guarantee for the company to prepare financial reports in accordance with generally accepted accounting standards, and the company's income and expenses have been authorized and approved by the company's management and directors.

Be able to prevent and timely discover illegal acts that have a significant impact on financial reporting, including illegal possession, use and disposal of company assets. The content comprehensively introduces the essence of internal control under the internal control environment-risk management, internal control activities, introduction to internal audit, establishment and implementation of internal control of occupational fraud and relevant qualifications of corporate governance. Since 20 12, the prelude to the implementation of comprehensive internal control audit of listed companies in China will be officially opened. In order to effectively pass the internal control audit, enterprises need to submit a qualified internal control self-evaluation report first. After more than a year's development, internal control process combing, risk identification and evaluation, and internal control system construction have become compulsory courses for the sustained and steady development of enterprises and the improvement of employees' competence. International registered internal control engineers immediately became high-end talents urgently needed by major enterprises, showing a development trend of demand exceeding supply. Enterprise managers need to better grasp the basic theory, regulatory requirements, practical skills, evaluation indicators and management methods needed for the construction of internal control system, so as to help enterprises improve the effectiveness of internal control system. In order to meet the growing demand for internal control talents, we will continue to send talents to the field of internal control management. Under the background of learning and introducing foreign vocational qualification certificates and perfecting and developing the domestic vocational qualification certification examination system, in order to be invincible in the increasingly fierce enterprise competition, the management must choose professional and technical personnel in the field of internal control and hire competent and reliable professionals. Obtaining the qualification certification of international registered internal control personnel shows that the holder has mastered the general knowledge and skills of internal control and has the professional ability of internal control. The professional knowledge system and certification standard of ICICS international registered internal controller qualification promoted globally. The qualification certification system has established the initial qualification standard of global internal control professionals and the requirement of continuous improvement of their professional ability.