Research On The Internal Control Of Chinese Medium-sized And Small Enterprises

The theory of "Internal Control" first appeared in the Audit Presentation of the AIA in 1936. As time goes by, the theory of internal control is becoming more mature, and the developing process of the theory can be divided into five stages: internal checks, internal control system, internal control structure, internal control integrated framework and integrated risk management framework. In 2002, the issue of the "Sarbanes-Oxley Act" made significant impact on the internal control theory, and impelled many countries to make some positive response, for example, some countries began to conduct research on the SOX, and tried to find whether this act was suit for their countries; Some countries attempted to improve their internal control system, and so on.In order to promote the development of internal control of Chinese enterprises, On Julyl,2009, "the basic norms of internal control" was carried out in the Chinese listed companies. It should be recognized that "the basic norms of internal control" is a very strong operational system. However, it would be hard to carry out this system in the medium-sized and small enterprises, because the owners have not realized the importance of the internal control to their business. Nevertheless, we can not give up researches on it, because the medium-sized and small enterprises has become an important economic force for supporting economic growth, enhancing employment rate and maintaining economic and social stability. However, the lack or the voidness of the internal control has been a significant complication, which would impede the development of the medium-sized and small enterprises, and even affect their survival. Therefore, it is important for us to conduct research on the internal control, and build up an effective relationship between the medium-sized and small enterprises and the internal control regulations.This paper uses the method of theoretical research and case study. Combining with the characteristics of the medium-sized and small enterprises, the paper begins from studying the basic theories of internal control, and states the problems about it. Afterwards, according to the relative documents of the internal control regulations, the paper discusses the goal of the internal control, and finds out the countermeasures of the problems. And then the paper chooses a medium-sized and small industrial manufacturing enterprise as an example to research its internal control. This part not only analyzes its internal control from the point of basic elements, but also analyzes the problems of internal control in business capital, purchase, payment, sales, collection and so on from the angle of economic business. At last, the part brings forwards suggestions which are expected to provide assistance for the establishment and the progress of the internal control of our medium-sized and small enterprises.The paper is divided into six chapters in structure:Chapter 1 refers the introduction. This chapter presents the background, significance, ideas and methods of the creation, and puts forward some relevant new ideas about the internal control theory of the medium-sized and small enterprises.Chapter 2 refers the basic theories of internal control of the medium-sized and small enterprises. This chapter presents the "medium-sized and small enterprises" concept and the characteristics of the internal control theory.Chapter 3 refers the problems and causes of Chinese medium-sized and small enterprises’internal control. This chapter summarizes the problems exiting in the internal control of our country’s medium-sized and small enterprises.Chapter 4 refers the strategy of perfecting the internal control of our country’s medium-sized and small enterprises. This chapter puts forward strategy for improving the internal control of our country’s medium-sized and small enterprises.Chapter 5 refers the study on the internal control of L company in Chongqing. This chapter presents the basic situation of the Chongqing L company, analyzes the problems of internal control exiting in the L company, and bring forward effective measures for the internal control of the L company on the basis of the analysis.Chapter 6 refers the conclusion. This chapter synoptically summarizes the main content and the deficiencies of this paper.