The Research Of Internal Control Issues On Sales And Collection Cycle For DEEJ Corporation

With the development of the capital market and wide-spreading of the economicintegration, the operating risk is increasing day by day. As a main profit source ofsales and collection cycle, the internal control should be paid great intention by theenterprise. Then the enterprise can maintain a sustained and healthy development.At time, scholars in and abroad have made many researches on the internalcontrol of sales and collection cycle. However, most of them were based ontheoretical research. The cases carried out by the regulation of internal control onsales and collection cycle are not that much. With the development of Chineseenterprises in recent years, the internal control of sales and collection cycle isbecoming more and more important. Because of the primary stage of some relatedregulations, enterprises are lack of experiences and there exists many problem. As astate-owned enterprise, DEEJ’s internal control is at start-up stage. Its system uptimeof sales and collection cycle is short and it’s in its best condition. Based on DEEJ, thethesis makes a research on internal control of sales and collection cycle, finds itsproblem and causes and bring up the countermeasure. This has big significance forDEEJ.The thesis is divided into6parts.The first part is introduction. The introduction mainly discusses the background,significance, research designs and methods.The second part is some concepts relating to internal control of sales andcollection. It mainly illustrates basic concepts of internal control, concepts of salesand collection cycle, the process of sales and collection and the internal control ofsales and collection.The third part is current situation of DEEJ’s internal control of sales andcollection cycle. And it’s illustrated in the aspect of company introduction, thefeatures of industry and the internal control of sales and collection. Besides, theinternal control is illustrated by the principal of five elements of internal control.The fourth part is the problems existed in internal control of sales and collection cycle. In order to deal with the problem, this part starts from the element of internalcontrol, which includes the environment, control activities, informing andcommunicating and internal supervision. Specifically, the problem existed inenvironment control is reflected as the lack of company culture relating internalcontrol, a lack of attention on risk but more attention an sales by management. Theproblems of controlling activities are existed as the shortcomings of the performanceassessment of salesmen and the lack of control of collection. The problems ofcommunication of information are existed as the calculation of rebate of sales and thelack of communication of the administration and the office of the company. Theproblems existed in internal supervision are existed as the poor effect of thesupervision of supervisory department and the lack of self-supervision of salesdepartment.The fifth part is the analysis of reasons of internal control on sales and collectioncycle. This part is based on the fourth part and makes an analysis of it. Reasons ofinternal control are as follows, the lack of attention on internal control of the staff, theshortcoming of performance assessment of sales staff, the lack of collection, lesscommunication of information and the problems existed in internal supervision.The sixth part is the countermeasures of improve the internal control of sales andcollection cycle of DEEJ. In dealing with the problem existed in internal control ofsales and collection cycle in DEEJ, this part makes countermeasures to solve it. Thecountermeasure is divided into four aspects. The first is to improve the awareness ofinternal control of the staff. The second is to perform effected activities of sales andcollection. The third part is to improve the communication system. The fourth is toenhance the internal supervision of the enterprise. In each of the measure there is thespecific measure to deal with the problem existed in the company. In this way, thethesis supply suggestions on it.