The Design Of Internal Controls For S Corporation

Internal Controls is an important method of business management. Some results showthat success is based on perfect and effective internal controls. Therefore, the study ofinternal controls is of great significance for the promotion of raising enterprisesmanagement level, the guarantee of accounting information quality, the improvement ofcorporate governance structures, the protection of investors’ legal interest. Sales andcollection bring revenue and profit. So internal controls for sales business is important inthe system.In this paper，based on the evolution of interpretation of internal controls in the Westand in China，first, expound the theory of internal controls, and get a deeper understandingof the intension of internal controls from several aspects like the internal controls conceptsand structure. On the basis of theory，conduct depth analysis on S Corporation salesbusiness. First, introduce S’ general background，then analyze in detail S’ sales businessinternal controls weaknesses-sales contracts and credit management, conduct detailedanalysis of the existing problems of this phenomenon, and find the causes of the problems,based on the above, apply the basic principles of internal controls and design the key pointsof S’ internal controls system on sales contracts and credit management. Last, review theresearch paper contents, draw a conclusion and indicate the paper’s limitations and theneed of further study.