Research On Improving The Internal Controls For The Risk-oriented Inventory Of HY Company

Because of the wide range of operational risks, operational risk is a big threat to the survival and development of enterprises. The development of global economic integration not only brings opportunities to the companies but also threats. Domestic and foreign enterprises because of the lack of internal control and incomplete risk management lead to the failure of the case to promote people to seize the opportunity and pay more attention to risk prevention. And strong internal control is an effective measure to prevent risks, risk oriented internal control gradually get people’s attention, and become an important part of business management. After twenty-first Century, the global financial crisis caused a serious impact on China’s manufacturing industry, about 70% of the company went bankrupt under this crisis because of internal control failure. Which shows that domestic enterprises can’t be timely response in the face of environment changes, domestic internal control system is also needed to improve.Inventory plays an important role of the enterprise’s current assets. In the process of manufacturing, the inventory reflects the economic value of the enterprise, it can be said that inventory is the core of enterprise survival and operation. Inventory management aim to achieve the optimal state of inventory costs and benefits, improve the efficiency of the use of funds and the economic interests of the enterprise. Inventory internal control is an important part of internal control, the efficiency of capital operation and economic benefit is directly affected by the control efficiency of inventory.The method of combining theory and practice is used in this paper. Based on the theory of risk management and internal control theory, the problems and causes of the inventory internal control of HY Company is analyzed. Then combined with the actual development situation of HY company, the author puts forward the improvement suggestions, such as cultivate a good cultural construction of inventory internal control, the establishment of a comprehensive inventory internal control system, and the improvement of the internal monitoring system. We hope to be able to provide some reference to country enterprise inventory internal control risk management.