Study On Small And Medium-sized Enterprises Internal Control In China

SMEs(Small and medium-sized enterprises ) have an important role in our national economy, however, in the course of the development of SME, that the setting of internal control is often unconscious or in pursuance of big companies is not conducive to the development and expansion of SMEs. From the process of starting the evolution theory of this internal control from abroad, this article analyzes the development process of our internal controls, described the internal control system of SMEs in China, analyzed the possibility of the existence of the crux of the problem, And to our internal control practices are based on combination of factors affecting of COSO internal control report, from the internal control environment, risk assessment, control activities, control and coordination of internal and external supervision of business strategy, business life cycle and the relationship between internal control point of view put forward corresponding countermeasures. To business strategy from the perspective of the construction of internal control to SMEs to provide some reference.The main conclusion and recommendations: My internal control is not mature, imperfect, present concern is mainly aimed at large enterprises. Chinese SMEs in the internal control problems relative to the large enterprises are more concentrated and more focused on the accounting control, this paper is based on our internal control practices, internal control issues raised SMEs Suggestions. The actual situation of SMEs in China vary widely, different strategies on the development of enterprises have greater impact, should be selected according to the business strategy of SMEs, in which the different life cycle and development vision for positive adjustment of other factors, highlighting different business strategy, the need for business development cycle, focusing on different objects, adjust, and constantly improve.Innovation of this paper is: Our internal control standard internal control objectives have expanded to strategic objectives, business strategy guides the direction of growth and development of enterprises, these are critical to the enterprises. Current research related to the introduction of only the strategic framework of internal control system, and did not consider the stage of development of enterprises; Derived by empirical analysis of the effectiveness of the strategic objectives of internal control is mainly affected by firm size and stage of development of two factors, not the business strategy combined with the development stage. This article is on this basis, internal controls should be put forward for SMEs and SMEs with the business strategy of life cycle coordination point of view.