The Internal Control Research Of A Private Iron And Steel Enterprise

With China’s economic condition shifting into a new normal, the development environment of the steel industry has experienced a profound change. In 2015, China’s iron and steel consumption and production both entered into the peak area and showed a downward trend, and iron and steel industry transferred from low profits into the overall loss, the development of the industry went into’the winter’period. While the private iron and steel enterprises occupy an important proportion in the whole iron and steel enterprises. Under the situation of an overcapacity of steel production, a continuous decrease of steel price, a sharp decline in economic benefits, the private steel and iron enterprises, as a big proportion of the iron and steel industry, only through perfecting and implementing the internal control of iron and steel enterprises by themselves, have the ability to promote enterprise development and improve the enterprises’economic actuality.This passage takes the case study method, and has done some summary about the theory and research on internal control, taken the "basic norms of internal control" as a reference, based on the basic theory of internal control, combined with the risk which is iron and steel enterprises in China are now facing with, and introduces the requirements to the important elements of internal control in China’s iron and steel enterprises, some management characteristics and potential risks of China’s private iron and steel enterprises, as well as current status. Take ZY company as an example. Analysis the risks it is facing with now basing on five elements of internal control and make some suggestions about the internal control of ZY company. ZY company is a typical representative of China’s private iron and steel enterprises, and problems produced in the development certainly have representativeness as well. Only by fully studying these problems and finding out corresponding solutions, the potential risks as a result of internal control problem could be prevented effectively from a large scale burst, and the healthy development of the iron and steel enterprises will continue.