Internal Accounting Control System Design based on Accounting

Abstract

With the shortcomings of enterprise in our country increasingly exposed in the management, in which the quality problem of accounting information is particularly prominent, and to improve the situation, one of the key factors is to strengthen the internal accounting control of the enterprise. Internal accounting control is an important subsystem, which refers to the unit in order to improve the quality of accounting information, to ensure the safety and integrity of the assets, also to ensure relevant laws, rules and regulations for carrying out the formulation and implementation of a series of control methods, measures and procedures. The research object of this article is in view of the accounting internal control system, based on the enterprise internal accounting control system of the general design idea, putting forward the overall design patterns ,which focus on enterprise internal accounting control system. Introduction Accounting information is enterprise economic activity information after collecting, processing, sorting, and classifying the output through accounting department. It is the recognized important basis to correctly reflect the operating results of the enterprise and the economic value. It is the core part of the system of accounting behaviour, the essence of which is a reflection of all kinds of interest relations. Internal users of accounting information are primarily managers of enterprises and management. With the expansion of enterprises, any individual cannot be very familiar with the whole situation of the enterprise. In order to avoid one-sided understanding, business operators need complete and effective accounting information to grasp the overall economic situation, to improve the efficiency of management, so the quality of accounting information is very important. Practice proves that good internal accounting control can find fraud in time, effectively reduce the negative impact of accounting information distortion. This article will take the basic theory of internal control as a research starting point, through the analysis of the internal accounting control theory and the practice situation, to put forward the enterprise internal accounting control system design of the overall train of thought, and devised its general internal accounting control system after studying of enterprise accounting business as a case. Internal Control Theory Framework Background investigation Currently, many companies in our country, there is a big problem about the accounting companies.Weaknesses in internal accounting controls mainly in the following areas: Table 1: The proportion of survey Topic The effectiveness of the implementation of internal accounting control system Reasons for the failure of internal accounting control system Property-ion Invalid General better best System is imperfect Poor leader-ship Poor execution Nature of units % % % % % % % Chief Enterprise 5 56 35 4 51 28 21 State-owned enterprises 9 43 34 14 52 30 18 Foreign International Conference on Advances in Mechanical Engineering and Industrial Informatics (AMEII 2015) © 2015. The authors Published by Atlantis Press 1900 Enterprise-se 14 40 43 3 57 29 14 Private Enterprise-se 17 49 17 17 59 34 7 Total 9 49 34 8 53 29 18 (1) Lack of awareness of managers, internal accounting controls for the lack of attention; (2)Construction of internal accounting control system is not perfect, unreasonable; (3)Internal governance structure is not perfect, which affect the validity of the implementation of internal accounting controls; (4)Business execution is not strictly for their internal accounting control system; (5) System on Evaluation of internal accounting controls audit lags behind. June 2002, the survey conducted by Renmin University of China regarding on internal accounting controls. Conducted a special investigation and statistics on 266 enterprises and institutions to the implementation of internal accounting controls reasons of failure of internal controls. From the survey results, the survey unit effectiveness of internal accounting control system is generally less than 58%.Imperfect internal accounting control system design is the main reason of the situation that internal accounting control system is not fully play its role, accounted for 53% of all respondents. The case in which the enterprise is the most serious. System design is necessary based on the background of these investigations. Theoretical analysis From internal control theory was advanced, there is the big change both on the control theory and framework. After the development in the 1990s, internal control research has entered a new stage, in 1992, the Committee of sponsoring Organizations issued a report the overall internal control framework, the research achievements of the COSO report got the business owners, management, auditors and experts and scholars generally agreement and thus become the most authoritative theory of internal control. The COSO report proposed an internal control overall framework consist of three control targets and five element, specifically is the efficiency and effect of business activities, the reliability of financial report and related laws and regulations to follow three control objectives, its form also includes five basic factors, as shown in the figure below.