The Research On HNG Tobacco Corporation’s Imporvement In Internal Control System Of Inventory Management

With the development of world economy, joint-stock companies become themainstream of economic entities, the separation of corporate ownership and control ofinformation asymmetry exists between the operators and owners of the enterprise, inorder to improve the company’s management, internal controls should be estabalished.It isn’t only an important part of modern enterprise management but also an importantcomponent of the system of internal management,which has great means to improvebusiness efficiency and ensure the security of the assets. Inventory as an importantpart of current assets, plays an important role in the enterprise asset management.It’shelp to enhance inventory management and the establishment of effective internalcontrol system is necessary.Reference to the COSO framework and the state ofinternal control is the basic specification,I analysed the HNG tobacco Corporation’sinternal control system, found that there are weak points in inventory management,specialized inventory system of internal control, so in the acceptance of storage,warehousing, inventory, issued, the scrapped links are more or less had problems, theperformance for the irrational acceptance procedures, warehousing departments didn’tachieve the separation of incompatible duties, the safety of corporate assets, operatingefficiency, because of so many disadvantages to be solved, so this study has importantpractical significance.This research aiming at the improvement of the internal control system ofcompany, this article begins with the find and analyze problems, then solve theproblem, ideas are expanded based on the literature review on the basis of combinedinformation obtained by personal investigation, the internal control of inventoriescombine theory and corporate governance leads to the need for a sound internalcontrol system in accordance with the five elements of internal control within theexisting inventory control system, respectively, and write according to businessprocesses, find the real problem exists in the various processes proposed thecorresponding suggested solutions. Finally, the improved business process diagramsthat critical control point, clearly the focus in the operation and attach the inventoryafter the re-design the internal control system to increase the operability.