Research On The Improvements On Internal Control System For Sales And Receivables Cycle Of Corun Co. Ltd

With the continued sliding of global economic, the problems such as salesrevenue atrophies, sales on credit rises and the speed of payment slows down haveincreasingly become prominent. It even leads to the worse influence especially forthe new energy industry. To ensure the enterprise’s growth, stability, andsustainability, it is particularly urgent and important to establis h and refine sales andreceivables internal control and regard its management as a core part of the businessmanagement. It is not only the primary means by which managers strengthen salesmanagement, control sales activities and improve the loan recovery efficiency, butalso the important content which to enhance the effectiveness of internal governance,to reduce the risk of sales and back section, and to maintain the competitiveness ofthe industry.The Corun Company is an integrated enterprise which produces and sales nickelfoam as its main products. Corun Company is competitive in the field of high-endnickel foam at home and abroad. However, for the construction of sales andreceivables cycle internal control system, there still exist many problems, such asthe unawareness of the management’s risk control, the limitations of risk assessmentprocedures, failure to establish a clear information feedback mechanism and so on.Therefore, it is essential to improve the sales and receivables cycle internal controlsystem to maintain a competitive advantage in its industry. Through severalinvestigations to Corun and the home and abroad researching of internal controltheory in recent years, based on five elements, the thesis firstly elaborate theoperating status of Corun’s sales and receivables cycle internal control system. Andthen propose the problems which happened in the sales and receivables cycle process.At the same time, I analyze the existing problems according to the actual situationand referencing to the internal control norm. Finally, I give my advice for theperspective of five elements in regard to optimize the company’s sales andreceivables cycle internal control system and to improve the effectiveness of theinternal corporate governance, in attempt to helping other enterprises in theconstruction of the internal control system.