Research On The Internal Control Of A Company Procurement

In recent years, more and more countries and regions begin to realize the importanceof internal control for enterprise survival and development. The United States haspromulgated some decrees on internal control mechanism and related measures，such as“Sarbanes-Oxley Act” and “Enterprise Risk Management Integrated Framework”. It’ssuggested that the United States and other western developed countries have reached anew level for the understanding and research of the internal control. Now China is alsostepping up the implementation of the construction of internal control. Internal control isthe basis of enterprise management work, the guarantee of sustained and healthydevelopment for enterprises, and the essential elements of success to enterprises. Due tovarious reasons, there is a big gap between the overall management level of Chineseenterprise and advanced enterprise in the world. However，the way of improving the levelof enterprise management is strengthening the construction of internal control. Internalcontrol is an important symbol of measuring the level of modern enterprise management.Proposing a suitable internal control system, can improve enterprise’s overall operatinglevel. Reducing the manpower cost to some extent, is good for the realization of the goalof enterprise management， and is advantageous to the healthy and sustainabledevelopment of company. Procurement is a key link in the process of enterprise operation,which is related to the cost and profit of company. Strengthening the internal control ofpurchasing links is the important means to reduce operating costs and to improve theefficiency of the enterprise, which is also an important way to enhance competitiveness.Based on internal control elements, this paper analyzes A company’s purchasing internalcontrol, discusses the related problems of procurement procedures in the internal controlof A company, and puts forward relevant suggestions for its internal control.The thesis has six parts. The first part is introduction, which sketches this article’sselected topic background, the domestic and foreign research literature and researchmethods and contents. The first chapter summarizes some related theories of internalcontrol. The second chapter begins to focus on analyzing A company. After introducingsome relevant background and basic situation of internal control of A company, theexisting problems in internal control of purchasing are analyzed. The third chapter analyzes the possible risks and problems that are several important contents in Acompany’s purchase link. To solve these problems, the thesis gives some advices，andsummarizes the division of labor in the concrete function departments and the key pointsafter giving perfect purchasing links. The fourth chapter, according to A company’sspecific situation, brings in the safeguard measures for internal control of A company’spurchasing links. The sixth part is the summary of full text.