The Improvement Research Of LNTY Company’s Internal Control System

Internal control is a process for assuring achievement of an organization’s objectives inoperational effectiveness and efficiency, reliable financial reporting, and compliance with laws,regulations and policies. Internal management control system should be found throughout allaspects of the company’s overall economic activity. It not only includes comprehensiveplanning and evaluation of economic activity unit, and development of regulations andemployee manuals. Also include accounting, auditing, monitoring, reporting and rectificationfrom the relevant department. Sound Internal control system is basis of company’s variousbusiness activities operated safely, orderly, effectively, and the important safeguard ofcompetitive modern company, thus it contributes to the company’s growing. But now theproblem is that, Internal control system can’t get attetion for few corporationsput it as corecompetitiveness. The result of nonsufficient dynamic development and execution along withenterprise is showing out. Internal control should be paid enough attention, if companies wantto survive in a competitive environment.Analyzing the current situation of Internal control in LNTY company, this thesis foundweaknesses of the Internal control by observation, inquiry and survey. Redesign of the Internalcontrol is made to improve the system according to the problems. First of all, this thesisintroduces topic selection background, literature review, the research methods and innovation,and expounds definition, five elements and related theories of Internal control. Secondly, itcomprehensively analyses the present situation of enterprise Internal control from theperspective of the five elements, finds the defects of Internal control, and evaluates theeffectiveness of the Internal control system for LNTY company. Thirdly, in view of the foundproblems, the improvement of Internal control from the company’ overall level and specificdepartment level should be carried out. Including the establishment of the risk warningmechanism, optimizing inventory management, stringthening collection quality, effectivelyavoiding the currency risk etc. At last, the conclusion and prospect are coming.Reasonable suggestions are made to increase the level of group management, improve thecorporate governance structure, prevent enterprise risk based on the analysis and redesign partof LNTY Internal control, the company development will be prompted much healthier.