The Internal Control System Research Of Xianghai Manufacture And Trade Co., Ltd

With a high speed development in economic growth, small and medium-sizedenterprises are rising in the scale and playing an important role in our national economy.As the increasing in the business expansion, their defects-typically the problems in fundresources, the personnel quality, technology and the manufacturing capability restrictedthe further development. There are problems in the management specially between thesectors of financial accounting and internal control whose rapid growth doesn’t meet theneed of market economy. Therefore, it’s an urgent need to build and improve an internalcontrol system that suits for the small and medium-sized enterprises.With the enlargement in the business scale, the managers’ knowledge growth didn’tcatch up with the pace of enterprises’ development. There are problems: the internalcontrol environment was weak, the managers’ sense of risk management was not strongenough, the execution to the internal control activities was not idea, also the system itselfwas but an empty shell, the communication in internal information exchange wasinconvenience and the supervision was imperfect, which restricted the enterprises to havefurther development. Facing the problems in building and improving the internal controlsystem, based on a real corporation-Xianghai Manufacture and trade co., ltd, this articlesystematically analyzed this company with the five factors of the internal control, and theproblems in internal control system in modern enterprises, and put forward the measuresto settle the problems in internal control environment, risk evaluation, main controlactivities, information platform, channels in communication and internal auditing. Alsothis article raised a conception which is a multi-dimensional internal control system(including enterprises, government, banks and social auditing) to improve corporateinternal control and achieve the strategy of sustainable development.