Research On Inner Control In Small And Medium Enterprises In China

As an important safeguard on survival and development of enterprises, the complete and reasonable inner control system is a key for enterprises to improve market competition. A complete company management structure can support the inner control system, while a complete management structure and mode can lay a foundation for an effective inner control system.As the subject to complete management structure and strengthen the inner control system in small and medium companies, the paper firstly analyzes the relations between management structure and inner control system. Then the paper gives suggestions and measures in completing management structure and inner control system. The small and medium companies should establish and complete legal person management structure focusing on board of directors and board of supervisors. They also should establish the management mode which the establishment inner and external benefit counterparts govern together. Secondly, the enterprises can establish management structure which all levels of duty authorization keep in balance mutually, promulgate inner management system and strengthen the inner control subsystems function. Thirdly, training personnel quality, the enterprises can foster the enterprise culture that combines humanism and the inner control system. At last, audit mechanism should be established to execute the inner control system effectively.Based on the research on the management structure and inner control system in small and medium companies, the paper can help the enterprises to complete the modern enterprise system and promote the sustainable development.