Research On The Inventory Internal Control Of M Corporation

The separation of corporate ownership and control of inf ormation leads to the asymmetry between the operators and owners of the enterprise. Under this situation, internal control should be e stablished as an important part of modern enterprise management. I nternal control has great importance to prevent fraud, reduce waste, improve business efficiency, and ensure the security of assets. Inter nal control exists at all the aspects of economic affairs of an enter prise. As an important part of current assets, the condition of inven tory using, the efficiency of inventory management and other factor s have great impacts on the financial position of the enterprise.This paper is produced based on the COSO framework and the relevant national basic norms of internal control, and further combined with the information obtained from the writer’s internship. Firstly, the paper find out the inventory management problems of M company, then analyzes the problems, and lastly it presents the way to solve the problems. This paper found that there are some problems in the acceptance of storage, warehousing, The vulnerabilities could be concluded as:the environment of inventory internal control is weak, risk assessment system has not been established, activities of inventory internal control are imperfect, the communication of Inventory internal control is inadequate, manifested as the ineffective implementation and supervision of Inventory internal control. Because of so many disadvantages to be solved, so this study has important practical significance.Confronted with the existing problems, the thesis puts forward the following suggestions to improve M Company’s current inventory management mode:optimizing the environment of inventory internal control, building risk assessment system, perfecting internal control activities of inventories, strengthening the communication of inventory internal control and improving inventory supervision and appraisal system.