Implementing Internal Control On Revenue Cycle In Cold Chain Industry Under Guidance Of ERM

In 2008, widely spread financial crisis reminds everyone of the image of"risk". More and more people are feeling the pressure of"risk"and starting to consider prudently how to avoid risk. In fact, the release of ERM by COSO in US has actively respondent and admired by many academicians. The extension of the internal control concept and the upgrade of internal control to strategic level make many people change their understanding of internal control. Under the guidance of ERM, It focuses on the implementation of internal control over revenue cycle in cold chain business. The characteristics and competition status of cold chain industry determine that management involved in this industry need learn from internationally advanced experience in order to improve their management capability and competence, finally to ensure meeting their operating objective, especially under the background of world wide economic downturn. To address this issue, this article makes an example of cold chain industry, builds up the internal control framework of revenue cycle and comes out detailed implementation instructions following the guidance of ERM. It is divided into 5 sections:Part I is a brief introduction of this article including some background information. It summarizes key opinions of domestic and oversea academicians, descries the practice of two companies regarding internal control over revenue cycle, and thus determines the scope of this research.Part II builds up the academic foundation of the research, which is ERM. It demonstrates the essentiality and feasibility of setting up framework under ERM, and the methodology to implement it as well. It links to operating objective of both company level and employee level, incorporates internal control into daily operation activities to ensure internal control is not for the sake of"internal control".Part III explains how it works under ERM for key activities over revenue cycle including ordering, shipping, accounting, & collection. For each activity, it follows several steps including risk assessment, risk mitigation plan, and execution.Part IV is an example that better proves the effectiveness of this research.Part V arrives at the conclusion of the research. It points out the limitation of the research and some advice for further study on this topic.