Author(s)

Changdi Fang ¹

Affiliation(s)

¹ Yangtze University, Jingzhou, Hubei, China

Corresponding Author

Changdi Fang

ABSTRACT

Because of the sustainable development of society and economy and the expansion of the scale of business, many large group companies with many children and sun companies have resulted in the financial organization structure is complicated, the management is chaotic, the capital cost remains high. In this context, many large, small and medium-sized companies have adopted the way of "accounting", that is, through the establishment of "financial resources sharing", "unified" way to achieve "centralized management" and "centralized accounting". Baosteel Co., Ltd. is a representative enterprise. The company has established a "financial sharing" organization, which can greatly reduce the cost of the enterprise, and effectively improve the business condition of the enterprise, and enhance the financial management level of the enterprise. Although financial sharing has many advantages, its advantages are not obvious. The disadvantages are also obvious. For example, the establishment of a financial allocation caused by the personnel flow, the replacement of posts, the adoption of new financial methods and financial system caused by administrative gaps, etc. The above problems have a great impact on the traditional internal management mode. This paper uses the theory of financial sharing and internal control, combined with the theory of internal management of Baosteel Group, discusses the internal control risk faced by the company in the course of operation, and puts forward the corresponding countermeasures.

KEYWORDS

Financial sharing center; Internal control; Financial model

CITE THIS PAPER

Changdi Fang, Research on Internal Control Risk and Prevention under Financial Sharing Mode of Baosteel. Financial Engineering and Risk Management (2023) Vol. 6: 107-116. DOI: http://dx.doi.org/10.23977/ferm.2023.060414.

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