How to understand internal control in a popular way?

How to explain what is enterprise internal control in a popular way?

The internal control of enterprises, in my direct and popular explanation, is to prevent the internal personnel of enterprises from corruption, or to have some unnecessary wrong policies or regulations.

For example, in order to prevent financial personnel from managing money and accounts and misappropriating enterprise funds, it is stipulated that cashier and accountant must be separated. This regulation is internal control.

How to explain what is enterprise internal control in a popular way?

Generally speaking, the internal rate of return is the discount rate when capital income equals expenditure. The total present value of capital inflow is equal to the total present value of capital flow, and the net present value is equal to the discount rate of zero.

Generally speaking, the project is feasible when the internal rate of return is greater than or equal to the benchmark rate of return. The sum of discounted cash flows of investment projects in each year is the net present value of the project, and the discount rate when the net present value is zero is the internal rate of return of the project. In the project economic evaluation, according to the different levels of analysis, the internal rate of return can be divided into financial internal rate of return (FIRR) and economic internal rate of return (EIRR).

Explain the significance of internal control and internal control information disclosure in more popular words, with 200 points respectively.

Definition: Internal control information disclosure is an important part of information disclosure, so what is internal control?

Information disclosure, at present, the relevant laws and regulations in China have not given a clear concept of internal control information disclosure.

Definition of.

It is the responsibility of the management to establish and maintain internal control.

,

Managers should regularly according to certain

Self-evaluation of the company's internal control design and implementation standards, and the evaluation results.

Disclosure to external information users in the form of reports, so that they can understand the internal control of the company to a certain extent.

Systems and business activities. Therefore, the disclosure of internal control information is the basis of the management of listed companies.

The internal control evaluation standard evaluates the integrity, rationality and effectiveness of the company's internal control.

,

Issue evaluation opinions in the form of reports and provide them to external information users. Internal control information disclosure

Method, can be included in the report of the board of directors or other reports, can also be provided separately, the so-called internal.

Ministry control report. At present, China does not require listed companies to provide separate internal control reports, but only

Requirements in relevant reports

(

Report of the Board of Directors and Report of the Board of Supervisors

)

Including information leakage.

The disclosure of internal control information refers to the listed company in order to protect the interests of investors and creditors.

In order to facilitate public supervision, and in accordance with the requirements of relevant laws, the internal control of enterprises is regularly improved.

Evaluation, rationality and effectiveness, and through a certain form of disclosure, to assure investors.

Make decisions with a full understanding of the enterprise. The disclosure of internal control information is based on management and directors.

Things will be based on the evaluation of internal control to understand whether the design and implementation of internal control are appropriate.

Whether it is effective or not, management authorities need to evaluate the effectiveness of internal control design and implementation according to certain standards.

Line evaluation.

The disclosure of internal control information is a supplement to the financial information disclosed in the financial report, which can help.

In order to improve the management's understanding of internal control and attach importance to the construction of internal control in enterprises. In addition, internal control

Information disclosure can provide investors with indirect evidence of the reliability of the company's financial report, which can make them do what they can.

It is possible to avoid risks and make reasonable investment decisions.

Who can translate the concept of "accounting internal control" in popular language!

I. The meaning of internal accounting control system Internal accounting control system refers to the systems and methods formulated by each unit to standardize its internal accounting management activities in accordance with the provisions of national accounting laws, regulations and rules, combined with the characteristics and requirements of its own business management and business management. Establishing and perfecting the internal accounting control system of the unit is an important measure to implement the national accounting laws, regulations, rules and systems, ensure the orderly accounting work of the unit, and also an important means to strengthen the basic accounting work. Practice has proved that the units that establish and strictly implement the internal accounting control system have a solid accounting foundation and can effectively play the role of economic management. Second, the basic content of the internal accounting control system 1. Internal accounting control system The internal accounting control system of a unit mainly refers to the accounting work organization system of the unit. 2. Accounting post responsibility system The accounting post responsibility system is an important system for the management of unit accountants (this aspect has been discussed in the third section of this chapter). The main contents include: first, the setting of accounting posts, the responsibilities and working standards of each accounting post. Two, the personnel of each accounting position and the specific division of labor. Third, the accounting post rotation method. Fourth, the assessment methods of various accounting positions. 3. Accounting procedure system The accounting procedure system mainly stipulates accounting procedures and basic methods such as accounting vouchers, accounting books and statements. Its main contents include: first, according to the provisions of the national unified accounting system, determine the setting and application scope of unit accounting subjects and detailed subjects. The second is to determine the accounting voucher format, filling requirements, audit requirements, transfer procedures, storage requirements, etc. according to the provisions of the Standards and the accounting requirements of the unit. III. Determine the requirements for setting, format, registration, reconciliation, settlement and error correction of the general ledger, subsidiary ledger, cash account book, deposit journal and various auxiliary accounts of the unit according to the provisions of the Standards and the requirements of the accounting of the unit. Fourth, according to the requirements of the national unified accounting system, determine the types and preparation requirements of external financial reports, and at the same time determine the internal accounting index system and assessment requirements according to the internal management needs of the unit. 4. Internal containment system Internal containment system is one of the important contents of internal accounting control system. When formulating the internal containment system, it should be considered in combination with the post responsibility system of accountants. Its main contents include: the principle of internal containment system, including the separation of institutions, posts, money accounts and accounts; Responsibilities and restrictive provisions of cashiers and other positions; Measures taken by relevant departments or leaders to regularly check restricted posts. 5. Audit system Audit system refers to the system of appointing a special person to audit and review relevant accounting vouchers within accounting institutions. The establishment of this system should also be considered in combination with the post responsibility system of accountants. Its main contents include: the organizational form and specific division of labor of audit work; Responsibilities and authority of audit work; Audit procedures and basic methods, etc. 6. Original record management system Original record is the basic link of accounting work, and establishing a standardized original record management system can play an important role in ensuring the normal operation of accounting work. Its main contents include: the format, content and filling method of original records, including filling, signing, transmission, collection and feedback requirements; Audit requirements for original records; The responsibility of relevant personnel for the management of original records, etc. 7. Quota management system Quota management system refers to the system of determining the basis, procedures, assessment methods and reward and punishment measures of unit quota. Its main contents include: the scope of quota management, such as labor quota, material quota, cost quota, personnel quota, working hours quota and so on. Basis, methods and procedures for quota formulation and revision; Specific measures such as quota implementation, assessment, rewards and punishments. 8. Measurement and acceptance system Measurement and acceptance system is the basis of financial accounting management. Its main contents include: measurement and detection means and methods; Requirements for measurement acceptance management; Responsibilities of measurement acceptance personnel and rewards and punishments measures, etc. 9. Property protection system An enterprise shall establish a daily property management system and a regular inventory system, and define measures such as financial property records, physical storage, regular inventory and account verification to ensure property safety. Enterprises should strictly restrict unauthorized personnel from contacting and disposing of property. 10. Budget control system Enterprises should implement a comprehensive budget management system, clarify the responsibilities and authorities of all responsible units in budget management, and standardize the preparation, approval and release of budgets. ......

The difference between corporate governance and internal control

The Relationship between Corporate Governance and Internal Control

First, corporate governance and internal control content comparison

1. Contents of corporate governance. Corporate governance can be subdivided into internal corporate governance and external corporate governance. This paper discusses the related issues involved in the whole corporate governance, that is, corporate governance in this paper includes internal corporate governance and external corporate governance. Specifically, the internal governance mechanism of the company mainly includes: (1) the protection of shareholders' rights and the role of the shareholders' meeting; (2) The form, scale, structure and independence of the board of directors; (3) Composition and qualifications of directors. (4) The establishment and functions of the board of supervisors; (5) Salary system and incentive plan; (6) Internal audit system, etc. These institutional arrangements of internal governance are aimed at establishing a perfect mechanism of supervision, encouragement, restraint and decision-making. From the perspective of market system, the external governance mechanism of the company mainly includes: (1) product market. Market pressure is the basic mechanism to prevent commercial companies from abusing their rights and maintaining their operations for a long time in most free market economies. Corporate governance depends on the product market. Standardizing the competitive product market is the basic standard to judge the company's operating results and managers' management performance, and the market mechanism of survival of the fittest can motivate and spur managers. (2) the manager market. A well-run manager market can evaluate managers' human capital according to their previous performance, thus encouraging managers to work hard. (3) Capital market. The corporate governance mechanism of capital market can be divided into two parts: the governance mechanism of equity market and the governance mechanism of creditor's rights market. (4) M&A market. From the perspective of corporate governance, active market control plays a unique role as an external mechanism of corporate governance, and moderate takeover pressure is also an important part of a reasonable corporate governance structure. However, the development of M&A mechanism needs to pay huge social and legal costs, and needs a highly liquid developed capital market as the foundation. (5) Independent market audit evaluation mechanism. This mainly depends on the objective and fair evaluation and information release of market-neutral institutions, such as accountants, auditors, tax agents and law firms. External governance mechanism, as an informal institutional arrangement, mainly uses market mechanism to make managers feel persistent and ubiquitous pressure and threats. Its organic combination with internal governance mechanism forms a complete corporate governance system.

2. The content of internal control. Internal control consists of five elements: control environment, risk assessment, control procedures, information and communication and supervision. Only when these five elements exist and are effective can we judge that the internal control of an enterprise is effective. (1) Control environment. It is the basis of a unit atmosphere, which affects the control of other parts by the personnel inside the unit. Including the integrity and professional ethics of employees, the competence of employees, the participation of the board of directors and the board of supervisors, the organization, the provisions of rights and responsibilities, etc. (2) Risk assessment. The analysis of relevant risks identified by the unit for its purpose forms the basis of risk management. Usually, risks come from the change of business environment, the employment of new employees, the adoption of new information systems, the application of new technologies, the reorganization of enterprises and the adoption of new accounting methods. (3) control activities. Policies and procedures for taking necessary measures against identified risks to ensure the achievement of unit objectives. It includes performance evaluation, information processing control, physical control, work separation and so on. (4) Information and communication. Information system methods and records related to financial reporting objectives. It can confirm and record all effective economic businesses, so as to correctly classify and provide accounting statements, and reveal economic businesses in financial reports. (5) supervision. The process of evaluating the implementation quality of internal control is the evaluation of internal control setting, operation and improvement activities. According to the specific implementation mechanism of internal control, internal control can usually be divided into two levels: the first level is the management system of enterprises, also known as "management control system", based on corporate governance. By checking and improving the relevant management policies and procedures, we can effectively control the operation of enterprises, continuously improve the efficiency and benefit of enterprise operation, and realize the preservation and appreciation of the capital invested by investors. The second level is the accounting system of enterprises, also known as "accounting control system". It ensures the reliability of business operation and financial status information and the property safety of investors through appropriate business authority setting and authorization, accurate accounting records, timely physical inventory and fair reports. The internal control system at this level can be considered as the most specific control. Because whether the control system can take effect depends on whether the appropriate information is obtained at the appropriate time and place, the existence and effective transmission of accounting information affects ......

Excuse me, what is the difference between the implementation of internal control and the effectiveness of internal control?

The effectiveness of internal control includes two levels, one is the effectiveness of internal control design, and the other is the effectiveness of internal control implementation. The so-called effectiveness of internal control design means that the design of internal control covers important risks that all organizations should pay attention to, and the designed risk response measures are appropriate. Generally speaking, all systems should be available, and these systems meet the requirements of internal control norms. From the design point of view, risks can be controlled. The so-called effectiveness of internal control implementation means that internal control can be implemented strictly (effectively) according to the design requirements. In our country, the problem often lies in the implementation level, and there are cases where the system is not implemented or arbitrarily implemented. Only by effective implementation can the system function be brought into full play, the risks can be effectively controlled, and the possible design defects of the system itself can be found, so as to improve the system.

What is the relationship between internal control system and internal accounting control system?

Internal control system refers to the supervision and control mechanism composed of audit, finance, supervision, discipline inspection, trade unions and other departments.

The internal accounting control system is mainly embodied in the audit and supervision of financial accounting process, the supervision of budget preparation and implementation, the supervision of financial inspection and review, including the supervision of financial personnel positions.

This relationship not only has the relationship of mutual supervision and restriction, but also has their own relatively independent control and supervision authority. For example, auditing can supervise finance, finance can also supervise the use and execution of funds, and supervision departments can also supervise auditing and finance. ......

The internal control system is the systematic supervision of enterprises, including the internal control of people and property; The internal accounting control system mainly carries out financial supervision from the aspects of capital budget planning, use and implementation, financial final accounts and so on. And it does not involve personnel and other aspects. ......

The difference between internal control audit and internal audit

Internal control audit and internal audit have different audit objects. The former only audits the formulation and implementation of the internal control system, while the latter includes not only the former, but also assets, liabilities and profit and loss audits.

What are the prescribed actions of internal control management? What does this sentence mean?

First, improve the internal control environment of enterprises and strictly authorize the examination and approval system.

In terms of corporate governance structure, the shareholders' meeting, the board of directors, the board of supervisors and the managers should form a relationship of power and responsibility distribution, incentives and constraints, and rights checks and balances to implement various management. In the setting of management departments, we should establish and improve a scientific internal organizational structure that conforms to the characteristics of enterprises, reasonably and effectively set up various departments and posts, establish a departmental post responsibility system, clarify work responsibilities, establish and improve an internal containment system, and separate incompatible posts. According to the requirements of internal control, the unit should follow the principle of incompatible job separation in the process of determining and improving the organizational structure. The economic activities of a unit can usually be divided into five steps, namely, authorization, issuance, approval, execution and recording. Under normal circumstances, if each of the above steps is carried out by relatively independent personnel (or departments), it can ensure the separation of incompatible duties and is conducive to the play of internal control.

The second is to standardize financial accounting and fully implement budget management.

Enterprises must, in accordance with the Accounting Law and the unified national accounting system, formulate accounting procedures suitable for their own enterprises, implement the post responsibility system for accounting personnel, and establish a strict accounting control system. On the basis of implementing the national unified first-class accounting subjects, enterprises should set up unified detailed accounts according to the needs of operation and management, and group companies need to unify the accounting detailed accounts of subordinate companies to unify their caliber and accounting. Clarify the procedures and methods of handling accounting vouchers, accounting books and financial accounting reports, and follow the accounting principles stipulated in the accounting system, so that accounting can truly achieve the purpose of providing information for national macro-control and management, internal management of enterprises, and understanding of their financial status and operating results for all parties concerned outside enterprises.

Budget is an important part of enterprise financial management. It is the overall annual revenue and expenditure plan of enterprise operation, capital and finance, including the whole process of financing, procurement, production, sales, investment and management. It is necessary to carry out comprehensive budget management focusing on operating income, cost and cash flow, scientifically analyze the budget results in time, and effectively control the differences.

Third, improve the property preservation system and guard against market risks.

Strictly implement property preservation control, restrict unauthorized personnel from directly contacting property, and take measures such as regular inventory, account verification, record protection, property insurance, record monitoring, etc. to ensure the safety and integrity of all kinds of property.

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 early warning, identification, evaluation, analysis and reporting of risks. If necessary, a risk assessment department or post can be set up to be responsible for the identification, avoidance and control of related risks.

Fourth, improve the employment system and strengthen information management.

The quantity and quality of human resources, the loyalty, centripetal force and creativity of human resources are the vitality and powerful driving force for the prosperity of enterprises. Therefore, how to fully mobilize the enthusiasm, initiative and creativity of enterprise human resources and give full play to the potential of human resources has become the central task of enterprise management. Human resource control should establish strict recruitment procedures to ensure that candidates meet the recruitment requirements. It is necessary to train employees regularly to improve their professional quality in order to better complete the prescribed tasks; Strengthen the performance appraisal of employees and mobilize their enthusiasm and creativity.

Five, the establishment of internal reporting system, improve the internal audit system

In order to meet the timeliness and pertinence of enterprise internal management, enterprises should establish an internal management reporting system, use management accounting means to truthfully reflect the operating conditions and disclose relevant important information in time.

Internal audit control is a special form of internal control. It is an independent evaluation institution for the compliance, rationality and effectiveness of internal economic activities and management systems of enterprises. In a sense, it is the re-control of other internal controls. Internal audit should be relatively independent in enterprises and other management departments, and it is best to be led by the board of directors or subordinate audit committees. The internal audit department is responsible for reviewing the implementation of various internal control systems and reporting the review results to the board of directors or the top management institution of the enterprise. The more detailed the internal audit work, the more perfect the internal control system, and the more efficient and reliable the internal control work. ...