Research On Internal Control Of Procurement Operations Of Jin Ye Zhong Wang Company

Under a more and more fierce competition market environment, an entity is now facing diverse and complicated risks. And internal control is being more and more emphasized. Procurement is a key part in company operation and is closely related to cost and profit, as well as product quality. Strengthen internal control on procurement activities is an important measure to cut cost, enhance company competitiveness and improve company efficiency.This essay is based on the internal control documents Company Internal Control Basic Requirement and Company Internal Control Guidelines, as well as theoretical knowledge for risk management. It combines with Jin Ye Zhong Wang company’s practices and is more focused on internal control on procurement activities. By measures of interview, study the company’s regulation, together with site inspection and testing, the Author gets himself clear of the internal control measures on procurement activities and try to find out the ignored point and weakness in the measures and work out solutions to improve them. The procurement activities are divided into work breakdown, demand list, purchase list, settlement and payment, return and change of purchased items, purchase request and approval, irregular purchase, etc. The Author tried to point out the risk points and key points of internal control for the above mention eight processes, among the internal activities of control environment, risk evaluation, control activities, information and communication, supervision, etc. A process flowchart is drafted to provide a work process for facing these risk points.Jin Ye Zhong Wang company’s comprehensive and complete procurement internal control system is more reasonable. The risk points are more clear and covered all the risks in procurement activities. The risks prevention measures are improved and established a system of prevention, supervision and review. The improved measures are more applicable:it is designed on the bassis on each process; more practical:each procurement process is designed with a flow chart; Improved efficiency:internal control regulations and flow chart is designed according to different process and different risks.