Internal control can be divided into accounting control and management control according to its different control purposes. Accounting control refers to the control related to protecting the safety of property and materials, the authenticity and integrity of accounting information and the legitimacy of financial activities; Management control refers to the control related to ensuring the implementation of business policies and decisions, promoting the economy, efficiency and benefit of business activities and realizing business objectives. Accounting control and management control are not mutually exclusive and incompatible. Some control measures can be used for both accounting control and management control.

legal ground

The basic norms of enterprise internal control system stipulates that in order to strengthen and standardize enterprise internal control, improve enterprise management level and risk prevention ability, promote sustainable development of enterprises, and safeguard the order of socialist market economy and social public interests, the Ministry of Finance, the China Securities Regulatory Commission, the Audit Commission, the China Banking Regulatory Commission and the China Insurance Regulatory Commission have formulated the basic norms of enterprise internal control in accordance with relevant national laws and regulations, which are hereby promulgated and will be listed on the market from July 1 2009. A listed company implementing these Standards shall conduct self-evaluation on the effectiveness of internal control, disclose the annual self-evaluation report, and may hire an accounting firm with securities and futures-related business qualifications to audit the effectiveness of internal control.