Internal Control Of SMEs In China Problems And Countermeasures

After the reform and opening up, China’s SMEs have developed rapidly, and occupy animportant position in the national economy. According to current statistics, SMEs account for99%of the total Chinese enterprises, China’s economic growth has become a key force to absorb laboremployment and maintain social stability. SME’s internal control, however, there are a lot ofproblems, and internal control is an important means of modern enterprise management, enterpriserisk prevention, to reduce unnecessary losses and raise capital profitability has a very active role. So,in today’s increasingly competitive economic environment, small and medium enterprises must beestablished and constantly improve its internal control system.In this paper, the internal control mechanisms of SMEs in China as the object of study, thecombination of research methods, data analysis and theoretical discussion described the currentsituation of China’s SMEs internal control, and analysis of its problems, these problems mainly insmall and medium enterprises. The foundation is weak, ineffective oversight of internal controlsand lack of risk management system of the internal environment. Turn to China’s SMEs internalcontrol norms as a basis, and provide some suggestions for the improvement of SMEs internalcontrol from the corporate governance structure, the internal audit function and risk managementsystem that SMEs should standardize its corporate governance structure, and give full play The roleof internal audit, financial risk early warning mechanism and strengthen the building of enterpriseculture.The value of this study is to: practice-based theory of the SME internal control characteristicsand existing problems, based on the internal control specification, drawing on the modern enterprisesystem, to clarify the SMEs to improve its internal control factors that should be considered andattention problems its building practice for SMEs in internal control to provide reference and help.