A Study For The Improvement Ofthe Current Internal Control System For Gx Company

Credibility crisis and financial fraud case are continuously exposed on the domestic and international capital markets. The user of financial information pays more attention to internal control than financial report. In recent years, five ministries and commissions like the ministry of finance released successively the enterprise internal control basic standard, application standard, evaluation guidance, audit guidelines to direct internal control of enterprises.The author has comprehensively known about the design of GX internal control and the present situation of operation, including company organization structure, post responsibility system, human resources, the meeting records of the board of directors, the board of supervisors and the manager office, financial books, procurement sales contract agreement and company’s budget and so on. The author has also carried on the walk-through test, field interview and questionnaire for the practical operation of the specific control procedures. GX is a company who has the characteristics of minor enterprise and S&T enterprise and individual enterprise and manufacturing enterprise. Take GX for example, we studied the internal control of this company considering the internal control environment and control activities by problem oriented method and the empirical analysis method and gives some corresponding solutions. The key point of this article is internal control. The paper conducts discussion from the four aspects of control of monetary funds, raw materials (procurement) control, accounts receivable (sales) control and budget management control.In terms of the content, this paper is not the comprehensive rebuilding of GX internal control. Combining the actual characteristics of GX, evaluation of guidance and audit guidelines, this paper that regards the internal control basic norms and application guidance as the main theoretical basis mainly researches the existing defects of GX internal control, finds the major loopholes of the design of internal control system and the control program that is perfectly designed but fails to get effective implementation, helps enterprises to improve the existing internal control system, suggests that enterprises carry out the important process which is not effective implementation, exchanges smaller control costs for obvious management benefits. Private investment enterprise participating in the management attaches importance to capital control, procurement control, sales control which is the main researches in this paper.In the writing process, the author conducts searching enquiry and analysis about the above-mentioned problems of GX, aims to demonstrate the real management present situation, gives targeted specific feasible solution and can effectively help enterprises to improve internal control management. Some innovation was mentioned in the article. For example, the internal control is a systems engineering and is closely linked with the social surroundings of the enterprises, the internal and external resources which is controlled, organizational structure and so on. Those minor enterprises can’t imitate the ready system due to cost and need some suitable internal control measures. In the aspect of production and business operation, small and medium enterprises which rapidly grow are possession and effective operation. The key to the study of internal control is the research on control defects. Enterprises should find specific ways and further improve the key control measures to deal with issues before they happen. The management layer of private joint-stock enterprise attaches great importance to the control of procurement and sales receipts and the internal and external relations, but their cognition for the internal control management is not deep and they fail to take the enterprise internal financial controlling and comprehensive budget management seriously enough.After the searching enquiry about the internal control of GX, the suggestions put forward by author has a certain reference function for solving specific problems of enterprises by combining theory with practice.