The Research On Internal Control Of Receivables Of BXN Based On Risk Orientation

The globalization of economy calls for the comprehensive participation of enterprises. To open up further markets and account for more shares of markets, selling on credit is regarded as an indispensable ways of sale in the condition of buyer's markets. On the one hand, selling on credit can not only reduce goods in storage but increase the operating income. On the other hand, however, the emergence of selling on credit brings about a lot of receivables which appear constantly in the transaction of enterprises'credit. Receivables can turn into bad debts, which will not only reduce the cash flow of enterprises but also increase the financial risk. Those receivables that cannot be received on time can be seen as the loss of enterprises. Therefore, the effect of the management of receivables can directly determine the financial risk of receivables o f enterprises. And the confirmation of risk-oriented internal control principles of receivables can be based on risks, and these principles can strengthen the internal management of receivables and reduce the risk of receivables.Firstly, the use of comparative analysis, the company's financial data by BXN vertical and horizontal comparative analysis, studies the basic situation and financial risks brought about by the accounts receivable BXN corporate receivables, mainly reflected the cost of risk, cash flow risks and bad debts on. According to the assessment of the risk from these three internal control perspective start to the internal control aspects of sales and receivables as a control point, BXN accounts receivable internal control problems are:departments unclear division of responsibilities, accounts Internal approval has discretionary accounts, difficult to recover overdue receivables, employee participation is not high. According to the five elements of internal control, internal control BXN reason accounts receivable of the problems arising focus on the performance on the control environment and control activities of the two elements. The lack of a separate regulation on the control environment information management department, evaluation and incentive mechanism is not perfect, the lack of a sound credit approval system on control activities, debt management is not in place. According to the problem and cause analysis, internal control methods as a starting point, improved control of accounts receivable from the start internal targets for the control environment and control activities of the two weak links specific, targeted improvement measures:the control environment the creation of specialized sectors fuses credit management; improve and implement credit approval system; to strengthen the management of accounts receivable owed from the control activities; the establishment of accounts receivable assessment and incentive mechanism. Through these concrete measures, and improve problem BXN accounts receivable and reduce financial risk.