| Internal control system is the guard system for the well-running enterprise operation, and also is the accelerator to make the economic take-off. With the reform and opening up of 1978, many private enterprises have gradually developed from the original small businesses, possessing a certain scale and technical advantage. By its own development and strategic plan, many private enterprises have landed in the stock markets of China, Hong Kong, Singapore and the United States and developed into the giants and played a much more important role in the Chinese economy than ever. In 2008, the subprime crises in the United States led to the global economic crises, spreading from the United States to the Europe and Asia. Until 2009, it is widely regarded that the crises have gone but the debt crises in the Greece dragged all the countries into the shadow of the financial crises. And our real economy is suffering and many companies met the difficulties in the operation. The deterioration in the operation environment and the fiercely competition in the market slowed down and even stopped the trend of development of the companies. At the same time, the private companies have no doubt been shocked and the existing problems in the internal control have been emerged fully. It is the first task for the private companies to enhance the internal control so that they can make a change and break through the bottleneck.Founded in 2000, AB Company is a private company which is producing the rare earth permanent magnetism materials and metal module products and whose products can be applied in the areas such as automobile, mobile phone, motor and elevators. At present, there exist so many disadvantages and risks in the internal control system in the AB Company and it is an imminent task to improve and perfect all the elements in the existing internal control system. In view of the above-mentioned status quo of the AB Company and according to the idea that the problems is proposed first, analyzed second, and solved last, the article is studying and discussing the internal control system of the company by doing the case study, questionnaire, site observation and asking the staff members.The article is divided into five parts. First, it is a generalization of the literature and research findings in the internal control at home and abroad. Second, with the related theory of the internal control, the status quo of internal control for the AB Company has been analyzed deeply and the existing problems in the internal control of AB Company have been proposed and the reasons have been analyzed. Then, according to the Ground Rules for Internal Control, the article identifies"Three Importance and One key Point"from the aspect of improving the corporate governance structure, adjusting its institutional arrangement, rebuilding human resources policies and building up the complete budget management system. Besides, by grasping the key control point, combing the business control point from the procurement and payment, production management and inventory management and sales and collections, we can design the internal control system. Last, to guarantee the effective implementation of the internal control system, the article proposes that the company should build up the information management system in the implementation and should improve leaders'awareness of internal control and should improve the quality of managers and continue to apply the checking and monitoring mechanism so that the internal control can be guaranteed and the internal control system of AB Company can be improved, which is also for the reference to all the proprietors and managers who are put the internal control into practice.We sincerely hope the article can provide some ideas and information for the future study for the similar internal control system building and improving in such private companies as AB Company. At the same time, the conclusion needs to be tested in the practice to further amplify the internal control system of AB Company. |
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