Research On Internal Control Of BF Company Inventory Management

The attention of internal control increases gradually with the rapid development ofeconomy, and becomes the center of modern enterprise management system. With theexpansion of business scale and the increase of economy activities, the internal controlstrategy becomes mature as well. Scholars propose different theories in different periods,after nearly a century of time, this strategy becomes relatively complete. Nowadays,SMEs become the mainstay of China’s national economic development, with theincreasing number and expending scale of SMEs, it is necessary to form a series ofstandard internal control systems to protect the development of enterprise, especially formanufacturing enterprises. Manufacturing enterprises take production and marketing asmain quests, and inventory as the basis of its normal operations. Inventory has a widevarieties of types, including raw materials, packaging materials, consumables, processingmaterials, semi-finished products and finished products, etc., which would bring a hugedifficulty to the management of inventory,with the speed of turnaround, is will have agreat influence on the company’s assets and profit. Therefore, it is necessary to improveand strengthen the enterprise’s inventory management system. BF company locates in thenortheast old industrial area, covers one hundred acres, major in ferrous metal smelting,dry slag, slag production, refining byproduct of smelt. In recent years, it expands with thegrowing of technic strength. With its expansion, internal management system also needsto be improved. Though BF drew up a set of internal inventory control system, it has notestablished an effective control environment, and the employees have not established theconcept of internal control. The internal control system is lack of monitoring, and can’tregulate employees’ behavior. In consideration of analysis of the problems above, authorwishes to put forward a practical solution to solve the problem of BF’s inventory internalcontrol system with the technology of correlation theories, let it develop better.In basis of large amount of references and theory books, this paper states thecorresponding theories of inventory internal control system in detail, analyzes BF’sstrategy, finds out the problems and proposes the corresponding solution. This paperconsists of the following six parts:The first part is an introduction, establishes the theoretical foundation of the article. It also states the development background of internal control, the importance of thepurpose of writing and thinking, and the overall arrangement of this paper, Highlights theimportance of internal inventory control system to industrial enterprises which is the keyof improving operating management. This paragraph lays a solid theoretical foundationfor later discussions.The second part is an overview of the theory of internal inventory control. Thischapter introduced the concept, content and implementation of internal inventory controlpurposes of internal control, cleared the definition of the concept of internal inventorycontrol and purchasing links from inventory, seven aspects acceptance links,warehousing sectors, requisitioned links, processing and production sectors, as well aspart of the library inventory system describes the internal inventory control content.The third part is the status of BF overview of the company’s internal inventorycontrol. This chapter introduces the BF’s overview and details of implementation of theinternal inventory control.The fourth part is the internal problems of BF inventory control analysis. Thischapter points out BF inventories internal control problem. They Include low personnelquality, message passing hysteresis, slack warehouse management, deficient control ofpurchase, missing supplier management.The fifth part is BF company inventory internal control analysis of the causes ofproblems. This chapter corresponds to the above problems, analyze the cause for whichthe control environment, internal supervision and internal control activities, informationand communication, risk awareness is weak five analyzes.The sixth part is perfect countermeasure of BF internal inventory control. Based onthe above analysis, this chapter to make a few comments as BF inventories internalcontrol problems to help them improve their own development.