improving the internal control system in hoa hung trading and investment joint stock company

Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling TABLE OF CONTENTS Chapter 21 THE STATE OF INTERNAL CONTROL SYSTEM OF HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY 21 2.1 CHARACTERISTICS OF ORGANIZATIONS AND ACTIVITIVES OF HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY WITH INTERNAL CONTROL PROBLEMS .21 2.1.1 The formation and development of Hoa Hung trading and investment joint stock Company with internal control problems 21 2.1.2 Production and business activities of Company with Internal Control System .23 2.2 INTERNAL CONTROL SYSTEM AT HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY CURRENTLY 27 2.2.1 Environmental Control 27 2.2.1.1 Management Characteristic 27 2.2.1.2 Structure 29 2.2.1.4 Planning, estimates and norms 37 2.2.1.5 Internal Audit Division 40 2.2.1.6 The external factors 41 2.2.2 The accounting system and economic information .42 2.2.3 Internal control procedures 48 2.3 REVIEW OF STATE OF INTERNAL CONTROL SYSTEM IN HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY 56 2.3.1 The results obtained .56 2.3.2 Some restrictions and cause 57 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling ABBREVIATIONS LIST Abbreviations Meaning AICPA American Institute of Certified Public Accountants HR Human resources ICS Internal control system IFAC International Federation of Accountants Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling TABLE LISTS Chapter 21 THE STATE OF INTERNAL CONTROL SYSTEM OF HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY 21 2.1 CHARACTERISTICS OF ORGANIZATIONS AND ACTIVITIVES OF HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY WITH INTERNAL CONTROL PROBLEMS .21 2.1.1 The formation and development of Hoa Hung trading and investment joint stock Company with internal control problems 21 2.1.2 Production and business activities of Company with Internal Control System .23 2.2 INTERNAL CONTROL SYSTEM AT HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY CURRENTLY 27 2.2.1 Environmental Control 27 2.2.1.1 Management Characteristic 27 2.2.1.2 Structure 29 2.2.1.4 Planning, estimates and norms 37 2.2.1.5 Internal Audit Division 40 2.2.1.6 The external factors 41 2.2.2 The accounting system and economic information .42 2.2.3 Internal control procedures 48 2.3 REVIEW OF STATE OF INTERNAL CONTROL SYSTEM IN HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY 56 2.3.1 The results obtained .56 2.3.2 Some restrictions and cause 57 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling ACKNOWLEDGMENTS During this course and complete my thesis, I have received guidance, great assistance from our teachers, all of people in my class With respect and grateful I would be deep to express sincere thanks to: Faculty Training - International Trade University have created all favorable conditions to help me in my education background and complete thesis All teachers of Commercial University and other foreign experts from Lyon3 University, most helpful, teach, encourage and create favorable conditions for me during the learning process to date thesis Despite great efforts, but my thesis still has mistake, hope to receive sympathy and suggestions of the teachers in marking thesis council Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling EXECUTIVE I have selected Topic: "Improving the internal control system in Hoa Hung trading and investment joint stock company ” Adress: 81 TAM TRINH street – HOANG MAI district Telephone: 04.37171977 Guidance: Nham Anh Hung director Mobile: 0932436666 Urgency of the subject Renovating and improving the efficiency of SOEs in general and limited company in particular is the policy of the Party has been implemented for many years In the process of innovation present, management is one of the subject It is interested in business, especially the construction of a system of internal controls effective at the enterprise Internal control increasingly made clear roles and positions important to the management business is with large-scale enterprises However we have many point of view about internal control: First Concept: Auditing Guidelines International Council No was the accounting Union of Malaysia (Malaysian Assembly of Certificated Public Accountant - MACPA) and the Institute of Accounting Malaysia (Malaysian Institute of Accountant - MIA) launched as follows: "The system of internal control structure is combined with the measures and procedures by the Board of an organization may accept, to support implementation of the objectives to enhance governance ability to conduct business practices in order and efficiency include: absolute follow the ways of the Board, protect property, prevent and detect fraud, mistake, ensuring accuracy , full current account data, timely and reliable financial data and information The scope of internal control systems also beyond matters directly related to the functions of accounting systems All personal principles of internal control systems as Duo's operations and systems are understood as internalcontrol." The second Concept: British Accounting Association (England Association of Accountant - EEA) definition of internal control systems as follows: "A comprehensive Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling system of control of financial experience and different areas established by the ManagementBoardto: • Conducting business units in order and efficiency; • Ensuring compliance with the absolute path of Board business; • Keep your property safe; • Ensure integrity and accuracy of accounting data, the individual components of the system of internal control are considered active examination or audit activities " The third Concept : Institute independent auditing United States (American Institute of Certificated Public Accountant - AICPA) defines internal control as follows: "Internal controls include the plan of the organization and all methods of distribution the measurement and recognition in the business to ensure the safety of their assets, check the compatibility and reliability of accounting data, enhancing the effectiveness of activities and encourage the implementation the long-term management policies " The forth Concept : the Federation of International Accounting (The International Federation of Accountant - IFAC) is: "The system of internal control is the plan of the entire unit and methods, the working steps that the comply with corporate governance Internal control systems help managers achieve the goals of certainty and order business effectively, including the respect of the management regulations; keep property safety, prevent detect errors and fraudulent accounting records complete, accurate financial reporting timely, reliable " The fifth Concept: In episode Curriculum Professional Accounting University of Canada: "The system of internal control is defined as a system of financial rules and regulations are not financial This system managed by the enterprise established to manage the business executive order and efficiency Ensure respect for all management regulations, keep safe assets, maintain records accounting regime fully and accurately the financial reporting deadlines So we can conclude all of concepts haves general point: The first is the internal control systems in an enterprise is understood as two parts: Part One is the internal control mechanism should include full service mechanisms, processes, regulations and professional plus an organizational structure (including the arrangement and Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling distribution division of assignment, authorization, etc ) to make the operation of the enterprise is effective and safe The second part of the internal control system is the control and supervision of responsible, including internal audit to ensure that the operation of internal control mechanisms mentioned above are strictly, there effective The second is the internal control system will be attached to every part, every process and all professional staff in many small businesses will be involved in internal control and control each other (rather than is only granted on the lower level control) Reasons need to internal control? In fact, management method of many companies still loose, while smaller companies operates are the same family- management style, while large companies operates redistribution rights for lower level without the fully tested Both these models are based on personal trust and the lack of regulation of information, cross-checking between the parts to prevent fraud Establish a system of internal control is established a monitoring mechanism where you not handle with confidence, but with clear rules to: - Reduce risk of potential risks in business (errors inadvertently cause damage, slow the risk of the plan, increased costs and reduced product quality ), - Protect property from damage or loss, loss, fraud, fraud, theft - Ensure accuracy of accounting data and financial statements, - Make sure all members comply with company rules and regulations of the law, - Ensure use optimal use of resources and achieve the set objectives, - Protecting the interests of investors, shareholders and building trust with them 3.Scale of the thesis Surveying Hoa Hung trading and investment joint stock company is business specialize in investment and consultant production and sales of products with large-scale maps, characteristics for the whole army in particular, the country generally so the management here is very difficult complex Implementation of the policy innovation, recently Surveying Hoa Hung joint stock company has been actively restructuring the Organization, to strengthen management focusing to improve the system accounting and economic information, internal audit as well as regulations and procedures to control the whole company But in reality Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling internal control system here is insufficiency, does not meet the requirements of management So perfect conditions internal control system current Hoa Hung trading and investment joint stock company is necessary in order to improve business efficiency and prestige of the company Structure of the thesis: The purpose of the Subject is a research system of reasoning about internal controling system It includes the nature, purpose, and components as well as the role of internal controling system position of business management Through practical study and propose specific solutions to improve internal controling system in Hoa Hung joint stock company Chapter 1: The basic theoretical problem of internal controling system in the enterprise Chapter 2: Status of internal controling system at Hoa Hung trading and investment joint stock company Chapter 3: Orientation and solutions improve internal controling system in Hoa Hung trading and investment joint stock company Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling Chapter THE FUNDAMENTAL PROBLEMS ON INTERNAL CONTROL SYSTEM IN BUSINESS 1.1 INTERNAL CONTROL SYSTEM IN THE MANAGEMENT SYSTEM 1.1.1 General Theory on the internal control system Internal control system is essentially a series of integrated activities, measures, plans, opinions, rules, policies and efforts of all members of the organization to ensure that organizational performance, achieve all manner of reason Can understand simply, internal control systems is a system of all what an organization needs to to get or avoid what it wants Base on this principle, the management systems of different international standards such as ISO, TQM, QA / QC to ensure the effective operation of an organization that has been built 1.1.1.1 General theory of control in management In relation to organizational structure, management has an impact on the organization, with the aim use the most effective of resources to achieve identified goals set The subject here is the management structure of the unit, including leading cadres at all levels and department of professional staffs who implement management and administration units Object management is people and things, the phenomenon occurred in the unit Object management has different characteristics so in the process by which management also appear these complex issues at varying degrees Management objectives of the unit are following a management process to measure and quantify the results that the unit must be oriented in a certain period of time The whole process of management includes two main stages: the directions stage and implementation stage of the directions given At each stage, control functions are important as it's always showed the actual level of management To achieve the proposed plan, implementation process should be respected in the whole process of management Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling Organization made here including from the application of these guidelines, the order has been oriented to the efficient use of resources available In this stage the manager must use the skills of their executive to manage, direct and coordinate all the departments Completed results are reported and compared with the objectives set out in the plan From these results, managers can examine, evaluate and adjust activities as appropriate to achieve objectives in a better way At the directions stage, should be oriented forecasts and target resources, at the same time check all information about resources and objectives, develop programs and plans After the plan has been under control, we can give specific decisions At the implementation stage of the directions, need to combine the resources under optimal, regular inspection and control process and results of the process to reconcile the relationship, adjusting entries criteria to achieve optimum results Thus, controlling is monitoring activities to ensure that these activities be carried out as planned This process includes three different steps: measuring the performance, comparing actual results with a certain standard and take action to modify incorrect or inconsistent standards An effective control system is to ensure that all operations are completed in order to achieve the objectives of the organization Under this definition, control is not a phase or a stage of process management but it is implemented at all stages of the management process Thus control can be understood as a function of management However this feature is also displayed very different depending on the economic mechanisms and management level, on specific types of activities, the cultural tradition as well as socio-economic conditions of each place in each specific historical period In general, control can be classified into direct control and overall control Direct control is the procedures; controlling regulations are built on the basis of evaluation factors, the component management system Direct control includes three basic types: behavioral control, process control and protection control Behavioral control is the control of individual activities by employees and who perform independent activities conducted This is relatively effective measures to detect and prevent fraud, mistake An effective control system will help entire job to reduce Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling 3.2.3 Change personnel policies in accordance with management mechanism Personnel policy is one of the constituent elements of the control environment has a strong influence on the management of each unit is the unit-scale and large number of employees The reason for such a personnel policy is essentially the attitude among people treated with human units, from the recruitment, training, assessment, methods used to manage and reward regimes discipline etc People always played a decisive role in the management process, can be both a management entity is subject to the same time, the client can manage Therefore, an appropriate personnel policy decisions mean to the quality and performance in the unit In Hoa Hung trading and investment joint stock company is not applied more rational process as described in the previous section, not to create convenience in implementing the policy, rules of internal controls in company HR policies are in line with the company only the old mechanism, centralized bureaucratic mechanism subsidy, when the sector surveying maps are also in the monopoly Transfer to new mechanisms, market mechanisms, personnel policies proved unsuitable It is time to have a change in the perception and action from the most senior staff to each member of staff HR policies in the company should be changed according to the following directions: First, the recruitment process, should issue regulations on the recruitment of the Company which specify some main contents: + Quantity Standard: Based on the requirements and performance (not arbitrary widespread recruitment) + Quality Standards: Based on qualifications and actual capabilities Only children in priority sectors are to meet the conditions of standards of competence and qualifications + About the recruitment process: Publicize recruitment needs, recruitment organization, with the process and try to determine the time and so on Second, the process of training and retraining should review the entire force of officials and employees of the company is decentralized to each subject-specific 68 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling qualifications, by type of job training programs for Nursing observations and more efficient First team is to consolidate staff training, focusing fostering knowledge, skills training for officer and staff in charge of training Assigning responsibility in implementing the training from the company to the member units, allocate enough cadres to implement the training Need Training Regulations promulgated by the Company to replace the temporary policy of decentralized management training work issued to suit the location and importance of training today Regulations must specify a number as principal objective, the location of strategic human resource training in production and business strategies of the Company and shall decentralize powers between directors clearly, Labor and Wage Organization Office and unit members in training; Defining the process made some major work in training and other forms of reward or discipline Also need to identify staff training needs of company in the short term plans and long-term plan, from which to build training content and determine appropriate training methods Third, the stage of evaluation, promotion and use, it is necessary to reassess the management staff in the company, considering each position, assess match between capabilities and qualifications location of staff with whom they are responsible On the basis of identified strengths and weaknesses of individual staff and business needs, should be adjusted accordingly rearranged to maximize capacity, each of the managers in the Company Work of promotion and appointment shall be conducted openly in the spirit of democracy the right person, right job Strongly promoted the young staff is capable, qualified and dedicated to those important positions The use of staff should be implemented flexibly and efficiently by assigning tasks to each department or individual for a reasonable maximum mobilization of every human’s wisdom for the general problems of the Company Fourth, the policy for employees to change fundamentally: First need to renew the 69 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling delivery pay plan for unit members to encourage units to increase productivity and product quality, increased business efficiency Avoid the average distribution, create incentives of the member units Should strongly commended for units and individuals achieve outstanding achievements, completed in excess of plan, especially the profit plan Reward level formulate more satisfactory (both materially and spiritually) for the study of science, experience initiatives, improvements in the areas of business, technical bring practical benefits to the Company In addition, the Company has attractive mechanism to attract talent and dedication stimulate talent, enthusiasm for the development of the Company timely encouragement, praising the good people and good deeds, or experience, the advanced models through information channels, the company announced internally 3.2.4 Organization of Internal Audit system under specific and concrete conditions of the Company In the large-scale units, Internal Audit is a basic factor providing supervision and regular evaluation of all activities of the unit, which includes ICS Main function of the Internal Audit is auditing truthfulness and reliability of information, verification procedures in the control unit; check compliance with policies, regulations and procedures currently in force; inspect vehicles for safety properties; evaluate the performance of duties and performance of the unit With such functions, Internal Audit is a very important role in ICS of any organization, a unit of any big or small Build and operate an Internal Audit System is necessary work, because that is one important solution contributing to strengthen and improve ICS unit, to efficiently serve the management In the Hoa Hung Investment and trading joint stock company, Internal Audit Division has been established and put into operation Due to many reasons including the organization and implementation was not suitable for the efficient work at the company Internal Audit was not as expected A division was born but not operating effectively, the correct and complete as indispensable This is very unfortunate because a unit of medium, large geographical areas, business activity as extremely complex Hoa Hung Investment and trading joint stock company is 70 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling building a system Internal Audit unit is very necessary set Internal Audit should become elements to control the management, evaluation, analysis of the operations of the company Therefore, in the future, re-organizing the Internal Audit system to be particular and specific conditions of the Company is an important solution to ICS gradual improvement in the company Internal Audit Board of the Company should be built along the following directions: First: The organizational model of Internal Audit Division Internal Audit established under the Board of Directors Internal Audit is from the payroll of 3-5 people, including chief of Internal Audit who is directly subjected to the direction of the Director of the Company Internal Audit is a member of the experts in the field of financial accounting, business was appointed from other departments or company from the member units Internal Audit Board operating under the program has been approved by the Board of Directors monthly, quarterly and yearly In this model, the newly attached Internal Audit level (board) has independently from other departments within the Company This ensures the fundamental principles of Internal Audit, create favorable conditions to promote the Internal Audit his role in the management Second: The content Internal Audit In the context of qualified staff capacity of the Company is limited, mainly only have experience in accounting and accounting examination, first Internal Audit of the company should focus on auditing and audit compliance activities player, considering it a key task The audited financial statements should be carefully implemented in the spirit of doing "lessons learned Financial statements of the Company should hire an independent auditing company comply with legal provisions to ensure the truthfulness and reliability of the information Third: About how to proceed and order, can be divided into the following basic steps: Step 1: Establish relationships with Internal Audit basic parts inside and outside the 71 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling unit The division within the department including company functions, the unit members of the company The external parts including independent audit, the State Auditor The establishment of this relationship is possible through the promulgation of regulations within the company aims to create consistency in implementation Step 2: Internal Audit promulgates regulations on the basis of regulations issued Internal Audit ago Company to study the amendments back to suit the characteristics of the sector, consistent with new organizational models as well as accounting standards, issued a new audit (Term Internal Audit previous model applies to the Company Internal Audit from unit members, unit members at the division also Internal Audit attached unit director) Internal Audit regulation of the Company to mention a few things: + Function and the relationship between the Internal Audit Division and department of directly leadership (Board Director), distinct principles to handle the audit issues + The order of appointment and dismissal of board positions in Internal Audit Division + Details of the audit process, on security, and responsibility to provide information storage, processing and reporting system form audit report + Regulation on training and directing the audit profession + The rules on handling petitions as well as monitoring and directing the auditor to ensure compliance, ensuring efficiency with the objective of the Company, the unit members Step 3: Develop and promulgate a system of forms, documents, materials auditing system to build a detailed outline for each audit profession, the sample evaluation questionnaire ICS especially compliance audit and audit activities for specific professional company such as production and business activities geodetic maps, activities in the industrial, export-import activities and materials surveying and map printing industry, etc Step 4: Conduct training Internal Audit professional training for Internal Auditors 72 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling Object here is to train officers of the Company has been appointed to the position of Internal Auditor The training can be combined with expert audit of the State Auditor, the university or the audit company at home and abroad 3.2.5 Organization of accounting system and economic science information The accounting system and economic information is one of three important components of ICS just provide information for leaders in decision making while management module is effective to control many aspects of the units In a series of organizational work of the accounting work, the organizations accounting system and economic information is considered basic content affect the quality of decisions as well as the effectiveness of ICS Therefore, the accounting system and economic information are held in a scientific way will make ICS member units are complete and more effective In Hoa Hung trading and Investment Joint Stock Company, the accounting management of the company very interested Operation of the accounting work is built according to the characteristics of industry, including content such as organization of accounting work, the system accounts and some professional guidance specific regimes, report method statements and reports, regimes of accounting vouchers, accounting books However, in angles to provide information for the management of the accounting system here did not meet the requirements: Information has delayed accounting of time has less accuracy The problem here is not due to quality information, quality service that is held by way of accounting information Therefore, the reorganization of accounting systems and economic information in a scientific way, to serve effectively contribute to the management works in order to improve ICS is an urgent requirement The organization of the accounting system and economic information to perform the following steps: Step 1: Carry out equipment and network installation to bring down the network to the accounting unit members The company can install software accounting and reporting software for fast and even human resource management software used for the whole company 73 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling Step 2: Develop accounting regime in the model of the parent company-subsidiary company On the basis of accounting regime applied by the Company, necessary to amend and supplement to suit the new model To ensure the smooth accounting in the parent company as well as in subsidiaries Step 3: Regulation of responsibility and authority to update and access to information and data reporting Due to the accounting database used for the whole company should be on security issues and the distribution rights for the department, each department must always be respected The company should issue regulations on access right information at the management level and the type of information Accordingly, managers are entitled to access any level of information access and what type of information Right here include access to view data and print reports by the prescribed forms, not including the editing of data Any modification, addition or cancellation of accounting information must be derived from the original vouchers in parts of initial data updated by the accounting vouchers issued under the provisions of the State and the Company Department did not update the data will not intervene directly in the database to modify the accounting data Financial Accounting departments in the unit members of the company will automatically retrieve reports as necessary The problem now lies in the responsibility for updating information, data accuracy and timeliness of unit members The company should have specified this in order to create uniformity in the implementation Accordingly, the need to specify the duration of the unit member shall complete the update data daily, weekly service for aggregating data of the Company Similarly, the time limit for the Company shall complete the update data and to report daily, weekly, monthly, quarterly and yearly Besides the provisions on time limits to complete sanctions should be strict rules violations There is such a new association was the responsibility of the department to provide information with accuracy and timeliness of information, ensure management decisions are made on the basis of accounting information systems quickly and promptly and high reliability 74 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling Step 4: Regulation forms of management accounting reports uniformly applied in all sectors Through the network has been installed accounting software, in the Office of the Company may freely access the data of the unit members were updated for the administration However, updates and reports on what needs to be unified Accounting software company now has many forms of management accounting reports (11 reports), should review the Company to issue the direction of the compact forms, showing the important criteria for management decision making In addition to the management accounting reports like balance sheet, statement of business activities, the Company should be prescribed only for the units set up management reports reflect the basic criteria such as turnover costs, goods, and debts Ensure the system administrator to report a simple, easy to fit but still provide enough information for making important management decisions With the way the organization and accounting system of economic information network with forms of management accounting reports simple and streamlined, providing accounting information for decision making at all levels of Management will improve management, accounting systems will actually become a useful tool in ICS of the Company Besides the accounting system and economic information through the intranet, periodic monthly, quarterly and year the unit conducted the reports submitted by regulated system forms This is considered the accounting reporting system is high legality (with seal and signature of the head of the unit) is the basis for the establishment of a consolidated report for the company The accounting system and economic information provided through two paths (internal networks and text) will exist in parallel and complement each other The accounting system and economic information to meet both has met the accuracy, ensuring that all management decisions are made and close more effectively, thereby contributing to the strong ICS and more and more complete 3.3 SOME RECOMMENDATIONS TO IMPLEMENT SOLUTIONS To the State, should revise the system of legal documents and direct current problem more drastic restructuring, innovation, development and raising the efficiency of public enterprises operating in national defense Finance Department - Ministry of Defense and 75 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling related agencies conducted a review of existing documents on Internal Audit supplements improve and change the direction required the public utility enterprises must organize the defense Internal Audit machine Avoid not required because the company should not neglect and interested organizations working Internal Audit Internal Audit is increasingly showing an important role in the business management Currently the companies are state-owned so the mandatory regulations to exist Internal Audit are natural rules On the other hand, than anyone else, is the companies where have the necessary and sufficient conditions for an operation Internal Audit effectively Therefore, the Finance Ministry should be mandatory requirements of this unit must be held Internal Audit parts, creating a legal basis for the implementation of the Companies To the Ministry of Defense, should direct the agencies to coordinate with the Ministry of Finance and Map Department annually develop a specific plan, details of quantity, quality and unit price of products topographic data, Defense maps to notify the Map Department to plan specific operating business and production operations of the Company To Hoa Hung Investment and trading joint stock company, leaders of all levels of the company, especially the most senior leaders have expressed their determination to establish and maintain a really effective ICS in the business This is a very important condition, the solution has been and done or not done is effective or not depends on the determination of the Company Here, the role of the Board of Directors is enormous The determination of the leadership shown in many ways: + Building and improving the organizational structure of the Company have lightweight, vertical from the top down to manageable The division between strong rights management is to facilitate the smooth operation ICS + Direct to the relevant sections review, amend and supplement the system of internal control rules in the company Apply the modern methods of management, application of scientific and technical advances in the management makes ICS actually promote efficient, confirming the role and importance of corporate governance management + Trust in Internal Audit Division as the main controlling factor for effective aid 76 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling management, gives you Internal Audit sufficient powers and independence of the enforcement process works + Strong in construction investment accounting system and economic information system in the sector, investment in computerization of the management in different areas + Consider human is the center of development, there is a fundamental change in how people use, especially the young, talented and enthusiastic Appropriate investment for human resources through appropriate human resource policy is the right investment always brings success for business In addition, the Company needs to make good propaganda, education and awareness of staff and workers in the company People who actually implement the policies and measures to improve ICS to understand, be aware of the role, its effect on the management of the unit Thus, the perfect solution actually goes into practice, was the implementation and support response Since then promote the new work for the management and production performance of the company business 77 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling CONCLUSION Renew and improve operational efficiency, enhance the management of which the ICS improvement is the key tasks of the enterprises in particular and joint stock enterprises in general ICS at the company was interested in building in recent times, however with the development, rapid innovation of the economy, the scale and type of business and geographical areas, the complexity in the management and administration has made ICS here revealed many limitations, has not kept pace with the growth of the Company So ICS improvement is often required and imperative for company in the current period In the framework of the scope and purpose of research has identified, topic "Improving the internal control system in Hoa Hung Investment and trading joint stock company" stated and solved the basic problem: One is described and analyzed the situation of ICS in Hoa Hung Investment and trading joint stock company which clearly showed the strengths and weaknesses and the need to overcome the limitations, ICS improvement Second, identify and propose directions in ICS improvement, the solutions and the conditions necessary for the State, Ministry of Defense, to the Company to implement effective solutions Hopefully, the results of research topics will contribute to improve ICS in the company, quality management and business performance, quickly make the company become a strong business in domestic in particular and the country in general 78 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling REFERENCE LIST Vuong Dinh Hue, Auditing Textbook, Finance Publishing House, Hanoi, 2000 Faculty of Accounting - Auditing, University of Economics Ho Chi Minh City, Auditing, Statistics Publishing House, Ho Chi Minh City, 2004 Mekong.Capital, Introduction to internal control systems, Website: http://www.mekongcapital.com Nguyen Thi Minh Phuong, Improve Internal Control System in the public utility aviation business, Thesis Master of Economics, majoring in accounting and analysis for economic activity, National Economics University of Hanoi, 2002 Nguyen Quang Quynh, Auditing theory, Finance Publishing House, Hanoi, 2003 Dang Van Thanh - Le Thi Hoa, Internal Audit - Theory and professional guidance, Finance Publishing House, Hanoi, 1997 Map Department - Ministry of Defense, Map Department chronicle events 19452000, publisher People's Army, Hanoi, 2002 History Hoa Hung trading and investment joint stock company Hoa Hung trading and investment joint stock company, Quality management system ISO 9001-2000, internal document, 2005 10 Hoa Hung trading and investment joint stock company, Regulation of financial management, internal document, 2006 11 Hoa Hung trading and investment joint stock company, Labor norms technology cartography work, internal document, 2008 12 Hoa Hung trading and investment joint stock company, Regulation of salaries and bonuses, internal document, 2006 13 Hoa Hung trading and investment joint stock company, Regulation training of employees, internal document, 2005 14 Hoa Hung trading and investment joint stock company, Regulations of building and issue legal documents, internal documents, 2005 15 Hoa Hung trading and investment joint stock company, the professional standards 79 Name: NGUYEN HUYEN TRANG Class: M2(09-10) financial and cotroling assistant, technician and professional skills, internal document, 2007 16 Website: http://www.chungta.com.vn 17 Website: http://www.webketoan.com, Forum Accounting - Auditing 18 Website: http://www.ifac.org , International Standards on Accounting 80 ... ORGANIZATIONS AND ACTIVITIVES OF HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY WITH INTERNAL CONTROL PROBLEMS .21 2.1.1 The formation and development of Hoa Hung trading and investment joint. .. M2(09-10) financial and cotroling control system confirmed and recorded 1.2 CHARACTERISTICS OF INTERNAL CONTROL SYSTEM IN HOA HUNG TRADING AND INVESTMENT JOINT STOCK COMPANY 1.2.1 The objective of internal. .. internal control system in Hoa Hung trading and investment joint stock company A noticeable feature is Hoa Hung trading and investment joint stock company operations not fully comply with the rules