Study on the Evaluation Model of Internal Control Based on the ERM Framework

In the current environment of financial crisis, enterprises need a real-time monitoring internal control system to improve their risk management level. COSO Committee of United States is a specialized research institution of internal controls. In 2004, this Committee issued "Enterprise Risk Management-Integrated Framework" (ERM Framework) formally which acts as a developing and improving issue of "Internal Control-Integrated Framework" published by the Committee in 1992. ERM Framework has exerted a profound impact on the enterprise's internal control and risk management. This article designs the evaluation indexes based on the two important dimensions of the ERM Framework and sets up a new internal control evaluation model with Analytic Hierarchy Process and fuzzy math. This model can provide a better method of internal control evaluation and help enterprises make early warning and deal with the crisis more objectively, accurately and comprehensively.