The Research On ABC Aluminum Corporation’s Improvement In Internal Control System Of Self-made Inventory

Research showed that70%of bankruptcies are due to the poor internal control.Internal control isn’t only an important part of modern enterprise management butalso an important component of the system of internal management, which has greatmeaning to improve business efficiency and ensure the security of the assets. In orderto develop and grow, we must effectively control and prevent risk, and have effectiveinternal control. Compared with other internal control, self-made inventory internalcontrol plays a more important role in non-ferrous metals manufacturing enterprises.Production management will help us reduce costs, improve quality and become morecompetitive. It can help us prevent frauds and reduce unnecessary losses. Self-madeinventory internal control acts as an important part of enterprise internal control, andits key function also has no doubt. Even in the small and medium-sized enterprise,self-made inventory internal control is still important in the mature market.Based on systematical paper research and summary of the basic theory of internalcontrol, this paper comprehensively analyzed the characteristics and questions ofexisting self-made inventory internal control in ABC Aluminum Corporation. Itpointed out the critical control point and proposed constructive suggestions, includingseparation of incompatible positions, authorized examination and approval system,bar-code scanning inventory system, waste products control system and introductionof inventory management system. Furthermore, based on the analysis of the causes ofthose problems, this paper put forward more suggestions including introduction ofinventory management system, establishment of self-made inventory internal controlevaluation system and salary incentive system, in order to improving self-madeinventory internal control system of ABC Aluminum Corporation.