Research Internal Control Purchasing Business

Recently, the importance of enterprise internal control has been raised to anincreasingly significant role along with the national policy guidance. Strengthening theconsciousness of risk prevention,regulation and establishing an internal control, improvingmanagement level of internal control is an urgent and important issue for an enterprise.In term of purchasing business internal control of A Mining Co., Ltd., and accordingto the developed theory,successful experience, establishing and improving enterprise internalcontrol management system and competitive advantage.Provide a successful cases for thesmall and medium-sized enterprise internal control. Hope this article can be helpful forenterprise internal control research and development.A Mining Co., Ltd. will be one listed company and now is waitting for approval, theenterprise internal control system also experienced from no to have, constantly adjust andcontinuous optimization of the dynamic process. Procurement is the beginning of activitiesof enterprises. Purchasing business has high risks, such as Inventory waste due to withoutproper approval or overstepping authorization, accounts discrepancy or asset loss caused byirregular procedures, capital loss or damaged credit caused by improper payment as well asthe great mistake, fraud, etc. So, purchasing management is the focus of internal control.This article is based on the five elements of COSO report and combined with the enterpriseinternal control standard, study how to improve the purchasing business internal control byanalyzing A Mining Co., Ltd. purchasing business internal control.The main structure is as follows:The first chapter is introduction of background, significance, research methods,research object.The second chapter is the introduction of theory, Including the content and means, fiveelements of internal control analysis, basic procedure, main risk point,latter evaluation etc.The third chapter is the analysis in case of A Mining Co., Ltd., Firstly introduces thebasic situation of the company, the present situation of the procurement business internalcontrol, discovery problems through the five elements of internal control theory and theproblems caused it.The fourth chapter is the focus of this article, includes how to improve the purchasing business internal control, research the enhancement of procurement business internal controlrisk assessment, control activities, ensure purchasing business information andcommunication, by analyzing research methods in improving enterprise procurementbusiness internal control environment, five elements of internal supervision of procurementaspects. Analyze and research price management, contract management, suppliermanagement in procurement control activitiesThe fifth chapter includes summary and outlook. In term of the theory of internalcontrol in enterprises and the practical application of limitations and gives proposals forenterprise to Standardize procurement business advice.