Internal Control:the Thinking Triggered By Shuanghui Of "Lean Meat Essence" Event

With the increasing of people’s living standards, health issues has become the subject of life, the food safety issues will also be put on the agenda, but why is the food security issues about people’s livelihood always of repeated? Since China’s accession to the WTO, China and the world is becoming more and more closely, in such a highly competitive market, food processing enterprises need to hold a highly cautious attitude, because facing the change of market, businesses slightest mistake will have the possibility of bankruptcy. Effective internal control can assure the business goals to be reached reasonably, internal control can reduce the possibility of risk which the enterprises face will face; In addition, in order to make the healthy development of the national economy, the country is also very great importance to internal control. Over the years, many scholars’exploring and relevant departments’impetus have made our internal control get great achievements-the basic norms of the internal control. The basic norms of internal control combined with China’s specific conditions on the basis of the advanced thinking of the foreign internal control theory, and ultimately the formation of the Chinese version of the COSO Report.March15,2011,"lean meat essence" event of Shuanghui was exposed by CCTV, and the lack of internal control is an important factor in this incident, this article will be based on the relevant provisions of our internal control’s basic norms, research internal control problems of Shuanghui Group,which led to this incident and propose appropriate solutions to solve these problems, the aim is to analyze the deficiencies of Shuanghui Group’s internal control, and the author will tall some of my humble opinion for improving the internal control of Shineway Group, but also hoping "lean meat essence" event can cause to the attention of the majority of food processing enterprises of their own internal control, and take corresponding measures for the improvement measures to achieve reasonable assurance that business objectives, improve product quality at the same time, More important is to safeguard consumers’ interests, only if can provide a good development environment for enterprises to enable enterprises to remain invincible in the future development.This article contains four parts. The first chapter is the introduction, describes the background and significance of this study, the main content and research methods, present situation and expected contribution. The second chapter is the basic theory of internal control, introduces the concept, role and limitations of internal control and so on, the development of internal control and the basic norms of our internal control. The third chapter introduces "lean meat essence" event and its causes. The study includes the basic situation of and the process and the impact of "lean meat essence" event, then according to the five major objectives and the five elements of the basic norms analyze the reasons of " lean meat essence" event for the event, and point out the internal control problems of the Shuanghui Group. Chapter four according to the problems of internal controls existing which was analyzed in the third chapter, proposing appropriate control measures ensure the effective implementation of internal control, and simple summary and future prospects in the final thesis of the article, lead the thrust of the article to general food processing, In order to succeed in a competitive market place, food companies should remember Shuanghui " lean meat essence " event and build effective internal control system.