The Research On The Internal Control Of Company J In The Tobacco Industry

Since the enactment of "Tobacco Monopoly Law" in 1991,China tobacco industry has developed as a monopoly industry.In 2013,by accelerating the process of materialized operation,China tobacco industry focused on promoting the establishment of provincial investment management companies and establishing a diversified enterprise management system.The problems exposed in recent years suggest that there are some regulatory gaps in the leading cadre behavior compliance and anti-fraud management.For the lack of control and supervision reason,some leading cadres appeared illegal operation by taking advantage of the benefits of your position.Due to the lack of internal control,it provides a breeding ground for the occurrence of fraud and violation,and sets up many obstacles to the standard management and goal realization of enterprises themselves.Company J,the object of the thesis study,is a manufacturer of fertilizer,agricultural film and other supporting materials for tobacco planting.Its product monopolizes the supply of tobacco-growing areas in province A.In 2021,the output value of company J is about 130 million yuan.The customers of company J are the county(district)tobacco companies in tobacco-growing areas,and the product users are tobacco farmers.This thesis,which takes the five elements of internal control as the starting point,and combines with principal-agent and insider control theory,studies the internal control of company J.The conclusions of this thesis on the internal control are as follows.In terms of the internal environment,the insider control is prominent,the human resource base is weak,the basis of strategy formulation and the motive force of implementation are insufficient.In terms of risk assessment,risk identification and analysis become a mere formality,the implementation risk response measures are inadequate.In terms of information and communication,the information system construction is still relatively backward.In terms of control activities,lack of budget assessment,the fund approval process is ’inverted’,the procurement approval process is redundant,and there is much deficiency in the management system of production safety and product quality.In terms of internal supervision,the system is not sound and the independence of supervision is weak.Based on the above questions,and around control activities,the thesis advances some of improvement and optimization measures,which takes enhancing the internal environment as the starting point.The measures mainly include strengthening risk management awareness,improving control activities,improving the quality management,procurement,budget and production safety and other major business assessment mechanism and management process,improving the internal supervision system,deepening the business integration of internal supervision and discipline inspection supervision.This thesis is expected to promote the construction of Company J’s internal control system,prevent and defuse the risk of compliance and fraud,by the implementation of the above measures.Besides,it will also provide certain application value for its compliance operation,healthy development,assets preservation and the interests of shareholders,and realize strategic goals.