In the process of internal control consulting service, it is found that many enterprises have no concept of "five elements of internal control", have not made clear the relationship between "five elements of internal control" and internal control system, and how to clearly embody the content of "five elements of internal control" in the process of internal control system construction. Seeing that many enterprises' internal control system documents write the "five elements of internal control" as a management chapter in their systems or manuals, enterprises themselves are increasingly finding that the "five elements of internal control" are empty and floating in the air and cannot be effectively implemented, and they think that the role of "five elements of internal control" is not obvious.
In the final analysis, this situation is that enterprises do not understand the essence of "five elements of internal control" and how to use it effectively. Next, combined with years of consulting practice, I will talk about my understanding of "five elements of internal control".
The construction and perfection of enterprise internal control system need to follow the concept and principle of "five elements of internal control", which runs through the daily operation and management activities of enterprises, and any internal control activities, systems and processes embody the principle of "five elements of internal control". "Five elements of internal control" is an interrelated, interactive and indispensable whole. Without any of these elements, the overall effectiveness of internal control will be affected.
The cognition of internal control by the top management of an enterprise basically determines the tone of the internal environment of the enterprise. Whether the attitude of risk internal control is risk preference, risk conservatism or pursuit of risk balance, whether the management style is radical, steady or cautious, implicit, whether the management style is authorization or command, whether it pursues management flexibility or emphasizes the rigidity of management rules, etc.
Enterprise internal control system is a "number one" system engineering, and the attention of senior management is very important. If the management's cognition of internal control is narrow, insufficient and lack of attention, it will inevitably affect the effectiveness of the construction and promotion of enterprise internal control system. In addition, the construction and implementation of internal control system need to be integrated into the management concept and style of enterprise management. For example, if the management style is entrusted, it is necessary to focus on institutional setup, power and responsibility distribution, and authorization system. And discuss what matters can be authorized, what are the conditions and rules of authorization, and how to effectively supervise after authorization.