Study On The Internal Control Of The Small And Medium-sized Enterprises

The internal control system is an important means of the modern business management which has indispensable effect on the property security of enterprises, reliability of financial reports, enhancement of the management and operation efficiency, and guaranteeing the carrying out of laws and regulations, achieving general goals of enterprises and overcoming many kinds of management flaws. There are many problems of the internal control of small and medium-sized enterprises as a result of the inside and outside reasons, for example, many small and medium-sized enterprises have many misunderstandings to the internal control and have not realized the importance of the internal control, many enterprises have not established the internal control system, even if some enterprises have established the internal control system, the control level is low. Besides we haven't officially internal control frame system in our country, and both the theory and laws are imperfect at present. All of the problems hinder the consummation of the internal control and the development of the small and medium-sized enterprises seriously. Therefore, resolving the problems of the internal control of small and medium-sized enterprises means a lot for the development of the internal control and the small and medium-sized enterprises.Applying the Internal Control—Integrated Framework, using both standard and empirical study, the paper tries to research and analyze the internal control situation, the problems and the origin of the problems of small and medium-sized enterprise, to give some countermeasures and suggestions. The paper is divided into five parts:The first part is introduction. Firstly the paper introduces the goal and significance of the topic. Secondly it outlines domestic and foreign research situation of the internal control briefly. Finally it elaborates the primary coverage and the research technique, as well as the innovation and insufficient of this paper.The second part is the evolution of internal control theory. Internal control theory has experienced four periods: the internal check system, the internal control system, the internal control structure and the internal control integrated framework. The Enterprise Risk Management Integrated Framework which expands the internal control is the newest development of the the internal control.The third part is the investigation on the internal control and the analysis of the problems. In the beginning the paper describes the investigation on the internal control of small and medium-sized enterprises in Shandong Province and analyzes results. Then the paper raises the existing problems from two angles. One is the internal control integrated framework, the other is the internal accounting control of our country.The fourth part is the analysis of origin reasons of the problems above. The paper gives three deep reasons. The first reason is every system has the internal flaw including of the internal control system. The second reason is the imperfect laws and regulations construction in our country could not provide good external environment for internal control construction of the small and medium-sized enterprises. The last reason is that good enterprise culture that can supply moral restraint and spirit has not built.The last part is the countermeasure and suggestion for the internal control of small and medium-sized enterprises. First, the laws and regulations must be consummated. Second, the internal control environment must be improved. Third, the risk mechanism must be established. Forth, good control activity is essential. Last, the internal control should be strengthened.