Research On Improvement Of DH Company’s Internal Control Management System

Internal control management is an important branch of modern enterprise management,as well as a crucial means for enterprises to resist internal and external risks and improve operating efficiency,it is extremely important for long-term development of enterprises.At present,due to the weakness in internal control management,a number of enterprises in China have gotten into trouble.Problems such as imperfect construction of internal control and mere formality of internal control system have become important factors which hinder the development of enterprises.Therefore,it is an important link in the development of enterprises to strengthen the construction of the internal control management system.Founded in 1997,DH company has been engaged in the plastic pipe business for many years.It is an effective way for DH,a private enterprise faced with fierce market competitions,to realize IPO and listing,so as to survive in the market game,seek cooperation with the capital market and obtain more financial supports.Since the establishment of the company,due to the extensive management mode,a number of problems exist in the internal control management system of the company.To achieve sustainable development,the internal control management system of DH needs to be improved.This paper has three parts.Firstly,through extensive data collection and literature reading,the research status and relevant theories of internal control in China and abroad are summarized,which lays a theoretical basis.Secondly,by consulting relevant information of enterprises,an in-depth analysis of the status of DH’s internal control management system during the period of pre-listing tutoring is conducted.Meanwhile,interviews,financial analysis and other methods are used to diagnose DH’s internal control management system and analyze the reasons.Finally,according to relevant legal systems,such as Basic Norms of Enterprise Internal Control and Guidelines for Enterprise Internal Control,with the five elements of COSO as the basic framework,some suggestions for improvement are put forward,including improving the internal environment,perfecting the risk evaluation system,strengthening the control of sales management and procurement management and establishing an internal supervision system.Through the case analysis combining internal control theories with enterprise practices,this paper enriches the research of internal control theories for Chinese enterprises,and provides a reference for the improvement of the internal control management system of enterprises to be listed or in the same industry.