Study On Internal Control Of D Quartz Products Company Inventory Based On COSO Framework

The inventory of a company occupies a large proportion of its liquid assets.The turnover rate and management control of the inventory are closely related to the company’s own financial status and business results.The internal control of inventory can make the inventory cost more scientific,ensure the safety of inventory,improve the inventory circulation process,and thus enhance the company’s overall economic strength.D Quartz Products Co.,Ltd.is a company that manufactures quartz products.It has good sales performance and service reputation in the industry.In recent years,the market share of its products has been continuously expanding,but there are still many deficiencies in the inventory management,lack of effective internal control,in the long run,will restrict the company from becoming bigger and stronger.This paper takes D Company as the research object,through the field investigation of D Company,analyzes the present situation of D Company’s existing inventory from the proportion of inventory to current assets,the proportion of all kinds of inventory and inventory turnover.We combined it with the basic theory of COSO framework,and from the five elements of internal control,a comprehensive analysis of the company’s inventory of the internal control status was finished.On this basis,from these five aspects,we find out the company inventory internal control of the specific problems.Through a thorough analysis of the causes of these problems,the control optimization measures of inventory was raised from the importance of the inventory’s internal control environment,the awareness of risk assessment,the improvement of inventory control activities,the establishment of an enterprise information communication platform,and the improvement of internal supervision systems.For D’s company,improving the current status of inventory internal control can reduce the company’s operating risk improve the company’s economic efficiency and market competitiveness.By implementing the optimization measures for the internal control of inventory of Company D,it is expected that the company’s internal control of inventory will be significantly improved,which will increase the inventory turnover rate of the company,reduce the ratio of inventory to current assets,and reduce the amount of funds occupied by inventory.The profitability will also be stronger and stronger.These optimization measures have certain practical value for improving the internal control level of Company D’s inventory.