| Summary: | 碩士 === 國立中正大學 === 會計與法律數位學習碩士在職專班 === 107 === Over recent years, cases of financial fraud happen repeatedly and many companies have been emptied, affecting financial statements of enterprises, companies’ management and related laws and regulations. The world now has senses of crisis due to the endless financial frauds in different companies.
Our government has adopted a number of institutions and precautionary measures, such as establishment of internal management mechanism in companies, strengthening information disclosure, normalization of systems and amendment of relevant laws and regulations, in order to prevent enterprises from corruption and fraud. On the other hand, independent directors and supervisors (Audit Committee) need to know all about internal systems in companies to play their parts in the most effective way. At the moment , it’s prescribed by our government that companies should set up an audit section which is under control by the board of directors when companies make public offerings. Meanwhile, professional auditors inside companies are needed to act as internal control audit of internal management, in addition to this, they are also required to declare that if there were serious weakness or great progress in management of companies, which are taken as important terms of listing.
This research uses the methods of case study by giving two typical cases. Case 1: ABC company used to be a manufacturer of laptop battery. In ABC company, executives initiatively promote reforms of the company while they change minds on company’s internal management just like turning a page. Besides, though they show strong support for implementation of internal auditing, they make many alterations of management system without attention to improvement of company’s mechanism. Case 2: XYZ company is engaged in producing memory cards. In this company, internal control system performs practically no function, reflecting in that chief executives take the thoughts of internal staffs too seriously. All causes too many meaningless repetitions in functions of corporate organizations, with less attention to mechanism of improving corporate departments and amendment of internal control systems and regulations. Therefore, case 2 is selected for deep analysis.
The purpose of this paper is to discuss how internal control system promotes beneficial parts, abolishes harmful points and prevents risks. Based on this, the essay begins with internal control environment, risk assessment，control operation, information and communication and supervision construction to make internal control system for enterprises in financial crisis. The essay offers researches on the above-mentioned construction and internal control system of two cases of companies, in order to:
Provide references for the business community to establish an effective internal control system in the future.
Offer solutions and references for internal control, internal auditing and related issues.
Assist with enterprises supervisory control authorities.
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