Private Construction Enterprises In The Internal Control Management Studies

As the industry itself getting mature and the competition ever more fierce, the internal management of private-run construction companys become the key to their survival and futher development. The "Do or Die"of such enterprises shall rely more to the risk management and cost control. While the fact is, private-run construction companys in China are universally lacking in internal control and weak in management. Therefore, this paper makes due research on this specific issue.The paper firstly reviews the development of the internal control theory, introducing some domestic theories and the current situation of interal control theory's research and development in real businss practice. Then, it presents the basic theory of internal control, including the connotation and target of such control, COSO's internal control system and risk-management structure, as well as the principles and fundamental methods of internal control. It then uses ZJA company as an example,illustrating its internal control environment, and analysing the risks and drawbacks in ZJA's existing internal control practice in purchase and payment stages. The paper goes on to design ZJA's internal control in purchase and payment stages, as well as the stages from company's purchase plan, purchase application & approval, selection of suppliers and price-asking, purchase contract management, up to the check-before-acceptance and warehouse entry. Such designs envision a purchase planning system and a supplier management system for the company. Finally, it comes up with a complete supporting measures to be implemented in ZJA's internal management. It also gives a series of advice, such as, improvement of acting structure and company framework, education and training of the employees, set-up of an overall operation planning system, reform of management methods and set-up of award/punishment system in its branch companys.