The Case Research On Internal Control Of Inventory In MK Company

With a series of macro-control policies, and manufacturing the weakness in the market, furniture manufacturing industry is facing the severe test and stress. Consumer demand for household are becoming more and more high quality, strong quality, personalized products, forcing furniture manufacturing enterprises need to constantly enrich and adjust the product range. In the process of furniture manufacturing enterprise reform, however, high inventory cost, capital takes up big, low capital utilization, inventory management problems gradually exposed. For furniture manufacturing enterprises, the inventory is the source of the life of the enterprise, throughout the whole process of the enterprise production operation, inventory management is not sound will directly influence the development of furniture manufacturing enterprises. As the economy continues to develop, the internal control system gradually mature at different stages of social development, a number of scholars have proposed different internal control theory, now before the formation of relatively complete internal control system. Internal control is one of the important ways of enterprise management, is an integral part of enterprise internal management system. Help to improve enterprise management efficiency, prevent fraud, ensure the safety of enterprise assets. For furniture manufacturing enterprises, therefore, how to strengthen the inventory management, and establish the effective internal control system is an urgent problem in the enterprise.In this paper, MK company as the research object. MK co., LTD. Is a furniture manufacturing and retail enterprise, through more than 20 years of development, the inventory management problems also gradually increased. Specifically, the company currently has faced with the problem of inventory backlog, material loss serious, capital takes up, such as inventory cost is not accurate. Although MK company developed some internal inventory control system, but does not create a good control environment, employees do not comply with awareness of internal control, internal inventory control execution of a lack of supervision. In this paper, starting from the actual situation of MK company, through the MK company operating in four cases, analyzing the problems existing in the inventory management, the application of relevant theory and practice of internal control, put forward Suggestions for the improvement of MK company inventory management defects, improve inventory turnover and the service efficiency of funds, reduce the inventory cost, speed up the inventory flow, for the rapid development of the enterprise to provide reasonable assurance.The paper is divided into four parts.The first part is the introduction. Mainly expounds the research purpose and significance, research methods, research train of thought and basic framework.The second part is case description. Mainly introduced the basic condition of the MK company, the company’s goods and inventory management present situation of internal control, focusing on MK company inventory management problems of internal control are described.The third part is case analysis. First applied to the analysis on the theoretical basis for the inventory management of the internal control, then according to the theoretical basis for the MK company inventory management problems of internal control is analyzed, and analyze the cause of the problem.In the fourth part, the writer proposes some improving suggestions based on the problems and reasons which have been talked about in the third part to help MK company to improve inventory internal control.