The Study On Internal Control Issues Of TZ Ltd

The internal control is an indispensable important link in themodern enterprise management, plays an important role in the preservation ofassets, risk prevention and improve efficiency. It is highly important to reinforcethe establishment and improvement of internal control system. Thus it can makesure that the national assets will be run safely and efficiently during the progressof founding the modern system, transforming the operating mechanism andturning the corporations into real dominant market economies. As a backbonefirm of the field of machinery, the internal control management experience ofTZ ltd. can be quite valuable and classical. However, in recent years, thedevelopment of the company remains slow even stagnant while the economicsincrease rapidly and the competition becomes fierce. That is due to theloopholes in the internal control system and delay in the management.In this article, the background and significance of the theory and practiceof internal control were introduced. Then the basic theories, especially the closeand complicated connection between the internal control, venture managementand financial management of the company were analyzed scientifically andreasonably. Meanwhile the relevant literature of internal control were concluded.By studying literature, investigating and interviewing, the basic data and currentproblems of the company were acquired; therefore the internal control systemwas analyzed.The article has deeply analyzed the current problems of TZ ltd. viewingfrom system, recognition and mechanism. The relevant principle of internalcontrol, venture management and financial management were used and severalissues regarding to the instruction and clearance were discovered. Being weakon execution leads to bad internal control; there is not enough disclosure onaccounting information. These loopholes and potential risks all affect theinternal control of the firm. Focused on these issues, the article has discussedthe policies and suggestions accordingly. The results of the investigation reveals, the company should improve itsinternal control system while insisting on processed management, meticulousmanagement and cost advantage according to the new economic situation. First,further improve the design of internal control system; optimize the controlenvironment and take measures in comprehensive venture management; second,improve communication and have a full disclosure of the information; and thelast, establish a constant supervisory mechanism and make sure to put internalcontrol into practice. The author expects that the results of the study can havesome practical significance for the improvement of internal control system ofTZ Ltd.