The Research On Xi Yi’s Internal Control Of Financial Aspects

Under the circumstances of economic globalization, enterprises are challenged with risks brought by the instability of enterprise external environment. Since the external environment cannot be controlled, the importance of internal control is high- lighted. By following this management idea, enterprises should take the internal conditions into consideration, thus be better equipped to survive and develop in the market. Yunnan Xi Yi Industry Company Limited with its optimized business procedures and high market share, is the largest scale enterprise in domestic field of vehicle engine rod production. However, in this faltering economies, no enterprise can escape from the attack of Financial Tsunami.In this paper, the research on Xi Yi’s financial internal control is based on the macro environment, industry circumstances as well as the company’s characters and provides series of optimizing strategies on Financial Internal Control. Therefore, not only the safety and completeness of assets but also the legality, truthfulness and integrity of the audit documents can be ensured, which leads to the maximization of shareholders’ profits. This paper starts with theories and gives a detailed introduction on history, key points as well as main characters of internal control. Next, the paper presents Xi Yi’s real situation from the perspective of internal control in three sections: cost, purchasing and payment cycle, sales and cash receipt cycle. Then, the paper analyzes Xi Yi’s existing problems and its causes in internal control of auditing and discusses the roots of these problems based on internal control’s five factors. In the end, the paper raises several supporting measures for Xi Yi’s financial internal control so as to maximize the company’s profit.