Study On The Problems Of The Internal Controls Of Small And Medium-sized Enterprise

Small and medium-sized enterprises (SMEs) has become the important strength of national economy in china, its importance first of all reflected in the activation of market competition, improving efficiency, promoting economic growth;followed by the creation of employment opportunities, alleviating the impact of the economic cycle; once again, in favor of new rural construction, transfer of rural surplus labor. Small and medium-sized enterprises is so important, but the internal bottleneck of the development of SMEs-the shortage of internal control has not been sufficiently valued, nor according to these disadvantages, adjusting and improving, leading to many SMEs lack of lasting vitality. On the context, this paper will discuss the internal control issues of SMEs in China, with practical significance.This paper using data analysis and theory, combining with the micro and macro understanding of research method, according to the conventional research ideas " put forwards problems-analyze problems-solve problems", based on the principal-agent theory, information asymmetry theory and management methodology, discuss small and medium-sized enterprise internal control.In the first paragraph, firstly expounds the definition of small and medium-sized enterprises and the internal control concept and theory; then in the second paragragh, XieHui references to zhongshan 100 of survey data, describes the present situation of small and medium-sized enterprises internal control; analyze the problems of small and medium-sized enterprise internal control and the cause; the forth paragraph analyze he small and medium-sized enterprises internal control of America and establish and perfect the internal control; finally puts forward some specific suggestions and measures of small and medium-sized enterprise internal control.Internal environment is the basis for enterprises to implement internal controls, directly related to the execution and implementation of the internal controls. How to optimize the internal environment to ensure the effective implementation of the internal controls is the focus and the difficulty of the current practitioners. Starting from the weak foundation of the internal environment, put forward the specific measures to optimize the internal environment, namely, regulating the governance structure and strengthening the culture of SMEs. In addition, for the poor internal communication and supervision, also put forward the improving measures, namely, accelerating the pace of SMEs information and giving full play to the supervisory role of the internal audit of SMEs. For sustained and healthy development of SMEs, analyze the cause of the current internal control problems, but also put forward specific measures to improve, with a very important theoretical and practical significance.This paper thinks that the internal controls of SMEs in China have two questions: first, the weak internal environment foundation; and second, ineffective communication and supervision. Most SMEs'scale relatively small, relatively simple operations, and staffing in the institutions setting up as the big companies, also did not fulfill their duties and professional counterparts, and often appears even one person, who is also the number of dual roles grade; management of SMEs have great knowledge of the internal control deviation, excessive pursuit of economic efficiency of enterprises, thus ignoring the importance and guidance of internal control; enterprise-related information can not be passed in a timely manner, the information processing capacity is not high, its utilization is not enough, the information can not play better the effectiveness, obstruct the internal communication; out of scale and labor costs, SMEs are often not on the establishment and implementation of internal controls to conduct supervision and inspection, nor on the evaluation of the effectiveness of internal control, much less finding internal controls deficiencies.The cause of the weak internal environment and poor internal communication and supervision:SME governance structure is not standardized, SME culture is lagging, SME information is low, the function of the internal audit is weak. SME governance structure not standardized displays in:equity structure unreasonable, the poor independence of the board of directors, the poor function of the board of supervisors, and the imperfect incentive and restraint mechanisms. SME culture lagging displays in: lack of core values, strong sense of voluntarism and the rule of man for both, lack of knowledge on enterprise innovation culture. SME information low displays in: manages of the low level of information, lack of funds and talents. The weak function of the internal audit displays in:the internal audit vague position, the poor independence of internal audit, the narrow scope of internal audit. In view of the above questions, small and medium-sized enterprises should take the following measures to further perfect the internal control. Firstly, the small and medium-sized enterprises must establish the corporate governance structure as the board of directors and the board of supervisors as center, namely, to establish the reasonable equity structure, strengthening the independence of the board of supervisors, and fully to exert the function and improve the incentive and restraint mechanisms Secondly, the establishment of enterprise's core values, and from strengthening "rule of law", improve leadership qualities, strengthen the understanding of culture of innovation from four aspects:to strengthen small and medium-sized enterprise culture construction. Again, small and medium-sized enterprise managers cognitive degree and reasonable use of funding and training talents, so as to speed up the pace of small and medium-sized enterprise information construction. Finally, the small and medium-sized enterprises must be full of internal audit supervision from the internal examination, clear and internal audit independence established to enhance the organization establishment, improve internal auditors, expand the scope of internal audit quality.