The Inventory Internal Control Research Of A Company

According to relevant statistics, it showed that inventories accounted for about50%of the total assets of enterprise in the manufacturing enterprises, someenterprises even more than50%. Thus, the inventory is looked as the importantcurrent assets of enterprise. In today’s fierce market competition, high or lowinventory cost directly affects the enterprises’ profit, and even decides the survival ofenterprises. However, the perfect inventory internal control, on the one hand, canprotect the safety and integrity of the inventory assets, on the other hand, caneffectively reduce the inventory cost and risk through controlling the key process ofinventory. So, it is of great significance to establish and improve the inventoryinternal control for enterprises, especially manufacturing enterprises, A company is achemical enterprise, the proportion of its inventory in total assets is larger. But, due toits inventory internal control is not perfect, it leads to the inventory managementshortcomings, in the short term, this will affect the profitability of the enterprise, inthe long run, will endanger the enterprise survival and development. For A company,therefore, it is urgent greatly to establish effective inventory internal control.This paper reviews the domestic and foreign scholars on the researchachievements of inventory management and internal control, the second chapter, itintroduces the inventory internal control and related inventory management theory,mainly includes the connotation, target, content, key points of internal controlinventory and related theory etc. On this basis, the third chapter, first of all, itintroduces A company’s basic situation and present situation of A company’sinventory internal control, then according to the five elements of internal control, itpoints out the company deficiencies of inventory internal control and analyzes thereason that resulted in the deficiencies. Finally, it puts forward suggestions aboutimproving A company’s inventory internal control.