The Research About The Accounts Receivable Internal Control Of ZSDL

Since the new economic mechanism, Chinese enterprises have been developingbecome healthier and more transparent. The more and more information forceddisclosure and more rational taxation policies have stabilized the market. However, someenterprises have met difficulties surviving due to its mismanagement, lack of riskevaluation and inner defects of internal control. Most deficiencies arise in certain area:transactions among related parties, non-separation of incompatible duties, imperfectaccounting system, inaccurate transmitting records, significant and long-termreceivables.These would create losses not only to investors, also to the state and people.This report takes the company ZSDL as a case, analyzing the company’s issue inreceivable control management. The company’s issue exists in three aspects:（1） The internal control environment of the account receivable——Organizational structure is imperfect, lack of internal control group and a legaldepartment; Power and duty allocation is not consistent, a few departments separating theincompatible duties and can’t do the separation of incompatible duties; Human resourcepolicy needs to improve, Employees lake of enthusiasm; Not form a good enterpriseculture, employees lack of team spirit.（2） The accounts receivable risk evaluation——risk recognition mechanismneeds to be strengthened, the company has established credit approval system, but thereare holes. The sense of risk management is eroded. When he faced the benefit and riskmanagement are often pay more attention to the interests of the eyes; The companybelongs to the type of risk acceptance, managements always want to find the solutionswhen the risk come.（3） The accounts receivable control activities——approval system existencequestion, fraud may be in cooperation and credit approval process; Asset preservation inthe loophole, popularization of accounting computerization system and electronicarchives storage system, but the records of accounts receivable and payment is nottimely; Supervision and inspection mechanism is not perfect. The office supplies thatsupervise the sales department have not achieved the effect.（4） The accounts receivable information and communication——the company’s external communication problems.（5） Accounts receivable supervision and inspection——credit approvalresults not updated regularly; didn’t notice the critical point in the internal control; noprovision for bad debts.Based on the above aspects, this report introduces the industry background of ZSDLand the motivation of this paper. Followed by the theories of internal control, withinterpretation of the development of its origin and basis. According to the analysis uponZSDL’s internal control scenario towards receivables, I find out the weak and make anassessment of the company’s internal control system. I redesigned an internal controlsystem for the company based on findings and current theories to solve the problems. Inthe process of solving the problem, this report gives the solutions to the internal controlenvironment, credit approval system and risk control issues, helping other enterprises inthe same dilemma as a guide.