The Analysis Of The Effectiveness Of Cash Flow Internal Control Of AQ Foreign Trading Company

Cash flow management has a critical impact on the existence of most businesses. A large number of studies have shown that many large enterprises, such as the Giant Group, United Airlines and Enron’s collapse was mainly due to mismanagement of funds, which caused cash flow strand breaks, even though they have problems in the quality of products or services and so on, the main reason of the financial crisis and company bankruptcies is cash flow get out of control. For private SME managers, the company’s cash flow management is very important for the survival and development of enterprises, efficacious cash flow management can contribute to business development and growth, on the contrary, poor cash flow management will have a serious negative impact. Simple financial management has been unable to meet the cash flow management activities of corporate governance requirements for decision makers. Therefore, how to strengthen the management and control the cash flow of corporate has become the focus of corporate.AQ is the typical representative of a large number of export-dependent contemporary among Chinese private enterprises, this paper take the internal theory and AQ company as the main theoretical basis and standpoint, we used theoretical analysis, questionnaires, review of testing, discussion and exchange methods to diagnosis the effectiveness of the internal control system in the following five areas which are environment control, risk evaluation & awareness, activity control, information & communication and inspect. We found that the decision makers and managers lack of knowledge of fund operation and management, and the internal control of cash flow management is lack of efficacy. For cash flow management problems of internal control, this paper presents the company’s cash flow to improve AQ internal control system and recommend appropriate action.Based on the research and analysis of the cash flow of internal control of AQ company, to explore ideas and methods to improve a fit of private foreign trade enterprise cash flow management, not only can play a role to improve the company’s cash flow management of AQ internal control, but also play an effective role in learning for the other private enterprises of same period which dependent on exports, It has an important practical significance to enhance the sustainable development of enterprise management capabilities and provide higher value strategic plan.