A Study Of The Internal Control Of Chinese Private-owned Small And Medium-sized Enterprises

Now private-owned small and medium-sized enterprises have been one of the most important economy power in China, so focusing on their business situations and developments makes sense to many people. But, the realistic is that a large amount of small-middle capitals (SMEs) are struggling on the edge of bankruptcy or even collapsed in a relative short time after starting their business especially for those SMEs. In general, one of the primary reasons for that is the lack of internal control system building.GZHL is a SMEs, who works on electric power engineering.It now faces their business difficulties is one of the cases. GZHL is in development, but it has not adjust its internal control system in due course. The old poor internal control system let them to pay the costs of loss, because of the problems of its organizational structure, the human resources, financing activities, procurement activities and contract management.The improvement of GZHL’s internal control system is an important method to build up its management system which is suitable for its current situation. The improvement of the internal control system can help the company from the internal management for the company to participate in the fierce market competition, provide a powerful guarantee to assist the company in the competition advantage, speed up the development.GZHL organizational structure, human resources, capital, procurement activities and contract management and so on five aspects of problems and the cause of the problem was analyzed, and the derivation of GZHL internal control the necessity of management improvement, aiming at these problems and their causes, combined with the improved the five aspects of the work management process, put forward the suitable for GZHL internal control management improvement plan for the development of the company.