Explore The Smes Internal Control Issues

Small and Medium-sized Enterprises(SMEs) are an important part of the nationaleconomy, it plays an important role in promoting economic development and social stability.There are many problems such as the fragile enterprise management framework, outdatedideas, confusion in the enterprise management level and poor transparency of financialmanagement for China’s SMEs internal control. The large number of examples to prove "therewill be fast development with good control and slow development with poor control，therewill be chaos without control." Currently the internal control has become one of the factorsaffecting the development of Small and Medium-sized Enterprises(SMEs). SMEs shouldstrengthen internal controls and improve economic efficiency that has become the consensusof current theory workers and enterprise managersThe Article2of "Basic norms of internal control " of Treasury Department clearly pointout internal control refers to the unit formulates and implements a series of methods,measures and procedures with internal control function in order to ensure the effectiveconduct of operational activities, to ensure the safety and integrity of assets, to preventdeception and fraud, so that to achieve management goals. Internal control system is a productof social and economic development to a certain stage, it must be subject to the influence ofsubjective factors and the external environment. To give full play to the role of internalcontrol in the modern enterprise system, internal control system must continue to constantlyimprove and standardize, so that they truly meet the actual needs of the development. China’sinternal control system of a late start, and its development in general has undergonegermination, development and mature in three stages. The current generic internal controlpractices are only just beginning to establish, internal control specification that is stillimportant guiding significance for SMEs is still in the exploratory stage of the study.The paper focuses on investigation of internal control issues for SMEs from internalcontrol field of view. Based on the management and accounting, using the research methodswhich combine cases with theory, by analyzing the current situation of internal control and thecharacteristics such as in large quantity, operations in a single, the industry is fragmented,small individual scale, flexible mechanism, strong adaptability, high efficiency, universalphenomenon of the family patriarchal system, direct centralized control than decentralizedmanagement, etc., of small and medium enterprises (SMEs) in China. Come to that our country SMEs internal control has the following characteristics: first, the degree of attentionfor the SMEs internal control is directly dependent on the attitude and determination of thebusiness managers, but the level of its internal controls are generally not high; second,important project’s internal accounting control was as the main way; Third, cross-check as themain means, etc.The paper use the exposition of nature, subject, object, etc. of internal control in internalcontrol theory, summed up many problems existed on internal control, it included internalcontrol environment poor, internal control system is not perfect, low quality of the internalcontrol system of actors, the lack of effective oversight mechanisms,etc. Meanwhile for theseproblems we proposed Strengthen internal control mechanisms, to better promote rapid andhealthy development of small and medium enterprises(SMEs), which start with severalaspects such as to create a good internal control environment, improve the quality ofmanagers, expand the sense of responsibility of the staff of the internal control, establish andimprove various rules and regulations, strengthen the external oversight and internaloversight, etc.The paper on expanding the scope of the study of internal control is also madeconstructive comments, such as the combination with the related theory of economics,management science, game theory, property rights theory to expound internal control theory,we will expect there should be a new breakthrough.