| The internal control is such a process which is implemented by the board of directors, the management and other stuff and provides reasonable assurance: the effectiveness and efficiency of the operation; reliability of the Financial Reporting; actual use Law and Regulations. As a control measure, Comprehensive budget has become the foundation of enterprise management. but Being limited to the financial, field the application of Comprehensive budget becomes a mere formality for most domestic enterprises, not integrating every operating activities of the enterprise.Engine factory of JC Company is an automobile part manufacture which begins own research and development, and is an important base for the creation of national brand products. The factory sustain great responsibilities of the independent R & D, if it can't reduce production costs and raise the management level as well as develop technical innovation, the factory will face the risk that the self-developed products are accepted by the market. The article mainly research the present situation and problems of the internal control of comprehensive budget, find and analyze the weak link of the budget management, gives some suggestions on timing, scientific of budgeting as well as rationality of budgets sets in an organization and how to lie in equitable and science performance of KPI. The research plays an important part of cost reduction strategic objectives and significance for other factories, enlarging the comprehensive budget research for basic level enterpriseThe article reviews briefly external environment, internal conditions and Strategic Design of the engine factory of the JC company, According to the analysis, the factory is in its infancy. It not only faces competitive market environment, changing macropolicy outside, but also lack of technical superiority and differentiating capabilities, therefore, the lowcost is the only feasible strategy. Posterior, the research of comprehensive budget of the engine factory mainly includes:Budgeting bases on JC company sales, produce and sale balance as a principle. Plans to operating budget and project budget, putting license fee into management budget in project budget, reporting to company for the non-license fee. Decompose budgeting to any department and monthly. Double standard for assessment indicators, both completing single assemble fee index and based on budget finish 5% cost reduction amplitude.Under the situation present, proposed the engine based on the comprehensive budget management of internal control defects.Firstly, lack of appropriate budget responsibility organization. no key management staff participation and promotion causes the inappropriate responsibilities distribution. Though management can pay full attention, the information doesn't make the every stuff realize the real importance and meaning of the budgeting through the organization settings. Budget becomes a mere formality. Lack of risk assessment, no full concern of risk in the process of budgeting and management, single basis and method of compilation can't be adapted to changing external environment and internal management circumstance. Thirdly, lack of analysis of purpose of budget management and control mechanism. More complicated approval procedure, not clear enough for approval purpose, lack of control mechanism and adjustment according to the changing conditions. Fourthly, unreasonable KPI, different department cost different fee, so it's inconsiderable to lower the same CPPC for performance assessment.Putting forward the existing problem of comprehensive budget management in engine factory based on internal control theory to approve comprehensive budget management is not only limited in data and statistics, but make full use of business managementFirstly, based on strategic objectives of engine factory, making budget management fully concerning on its own actual situation, in case that budget becomes digital games finally. Secondly, establish Budget Management System, implement the responsibility of key management person, clarify the responsibilities of departmental staffs, and heighten the competence of key positions. Thirdly, setting up information integration system, fulfill paperless for budget procedures, simplify approval procedures, and improve management efficiency according to fully empowerment. Fourthly, set up scientific examine target, and ensure the reality, reliability and accuracy during the budget process. Fifthly, set up the excellent communication channel according to the information system, promote the budget management. |
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