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

Small and medium-sized enterprises (SMEs) are very important in our national economy. But there are many deficiencies in the corporate management, especially in the internal control. So the operating risks cannot be prevented effectively. Today, external economic environment has a very fast growing. In order to establish a highly- efficiency and feasible system of internal control which is suited to themselves, SMEs need to understand existing criterions and related theories .So that they can improve the ability to adapt the business environment and respond to external risks. It is significative to discuss how to establish a sound internal control system in SMEs from theory and practice .Because it not only can improve the efficiency of the management and control operational risks for SMEs, but also it has profound significance for achieving efficiency of the whole society.First, this paper studied the significance of internal control for SMEs, and introduced the studies on the status quo of internal control, stressing on Internal Control-Integrated Framework .Then the paper introduced the evolution of internal control theories, and expatiated the fundamentals and means of internal control according to the Basic Criterions of Internal Control. Then, the paper carries out a general idea and procedures of internal control system designs for the proposed SMEs by analyzing the characteristics and demands .Based on this, the paper designed a system structure, including policies of internal control, main procedures, subprograms and checking tables. Thereinto, the paper showed the control procedure by the business process of sales and receivables in the part of subprogram. Finally, the paper introduced the example of waster management which was applied in D Ltd..