Value and Integral Design of Standards for Enterprise Management Control

Abstract

With economic globalization going further, enterprise risk issues are increasing. Many countries in the world emphasize on enterprise internal control, and a series of regulations and standards are being formulated and implemented by organizations, such as the famous COSO frameworks. In China, enterprise internal control and risk management are also attached great importance and Standards for Enterprise Internal Control has been established. Generally, management control is the process by which managers influence other members of the organization to implement the organization’s strategies (Anthony and Govindarajan 1998). Management control is linked closely with internal control. They are interrelated a lot, but not the same. The emergence and development of the management control is determined by the demand and supply of management control theory and practice. The demand and supply of management control should be matched. All these provide a background of formulating a system of Standards for Enterprise Management Control, especially in China.