Study On The Problems And Countermeasures Of Internal Control In Small And Medium-sized Enterprises

After the reform and opening up, with the development of small and medium-sizedenterprises, according to incomplete statistics, by2008, our country small andmedium-sized companies accounted for about98%of the country, absorb employmentnumber accounts for81.1%of the total enterprise workforce. Has become the mainforce of employment in our country, has a pivotal position in national economy. Withthe development of economy, however, many small and medium-sized enterprise’sdevelopment is limited, one of the important reasons is the internal control has manyproblems.This paper takes Hangzhou small and medium-sized enterprises in our country asthe research object, based on the COSO framework and internal control on the basis ofsome classical theory in combination with the characteristics of small and medium-sizedenterprises, by designing the questionnaire survey and interviews to understand thecurrent situation of small and medium-sized enterprises in our country, using EXCELand statistical software SPSS and the questionnaire survey and the interview results arequantitative and qualitative analysis, the problem of small and medium-sized enterpriseinternal control in our country were studied, and interactive analysis and theory analysismethod is used to explore the reasons of the existence of its. Results show that ourcountry small and medium-sized enterprises in the internal control in the controlenvironment, risk assessment, control activities, information and communication,supervision, there are a lot of problems, mainly manifested in the following aspects:(1) The overall control environment is poor, the specific performance in themanagement of the internal control consciousness weak, part of the enterprise internalcontrol system, but the internal control system is not sound, and each industry but nopenetration into the enterprise internal control systems and staff.(2) The imperfect corporate governance structure. Due to the small scale, manysmall and medium enterprises is a personal pluralism, a lot of joint-stock enterpriseswithout the board of directors, board of supervisors, and even lack of internal auditdepartment. But some companies have internal audit but not play their role.(3) The performance evaluation system is not perfect, many small andmedium-sized enterprise performance rewards and punishment system is not perfect, itis difficult to play a role of performance incentive. Salary system is not perfect, somekey positions and the administrator of erosion in severe cases. (4) The fraud mechanism is not sound. Most small and medium-sized enterprisenot set up the mechanism of anti-fraud, lack of information feedback system, and is notsensitive to outside information, failed to timely discover and reflect the fraud as earlyas possible.(5) The lack of supervision, internal audit did not play a role of supervision, andnot on a regular basis to periodically evaluate the situation of the implementation of theinternal control and inspection. Financial violations occurred frequently.To aimed at some problems existing in the analysis of the reasons and puts forwardsome internal control to improve the management consciousness, improve the corporategovernance mechanism, a sound performance evaluation system, and establishing thecomplaint channels, strengthen the supervision and so on.