Internal control design and operation

Author: Zhao Baoqing
Publisher:
Publish Date: 2005-05-01
Features: This book analyzes the objective foundation of internal control from the perspective of the principal-agent economic responsibility relationship and corporate governance structure; elaborates on the functional role of internal control's constraints and incentives from the perspective of cybernetics and behavioral science; and explores the relationship between internal control and value and value management from the perspective of value chain management theory. These constitute the theoretical foundation for the design and operation of internal control. The empirical investigation process and results of internal control provide a practical foundation for its design and operation. The control subject, control object, control goal, and control methods constitute the basic elements of internal control design, while the control of major economic business activities in enterprises constitutes the basic content of internal control design. The operational mechanism of internal control is constructed based on operational procedures that are mutually influential and restrictive at both the micro and macro levels.