Research On The Improvement Of Internal Control For JS Company

With the rapid development of our economy and the international convergence of the modern enterprise system theory, China has became another market where the theory of internal control is growing rapidly. However the problems of the internal control in enterprise are also in constant, even the government departments have issued the Enterprise Internal Control Basic Norms and the Enterprise Internal Control Application Guidelines, Enterprise Internal Control Audit Guidelines and the Enterprise Internal Control Evaluation Guidelines to do some positive improvement in this area to promote the standardization and development of internal control and improve enterprise competitiveness core strength. For SMES(small and medium-sized enterprises) which is the cornerstone in the composition of the national economic development of gold tower in China at present, the internal control problem is also one of the most difficult in development. Therefore, It's necessary to do discussion and research on the improvement of internal control in SMES, which is important to improve the anti risk capability and operation quality.This thesis will take JS company as a blueprint to do some discussion and research on the problems of internal control in small and medium sized enterprises. I will mainly discuss in three parts which are the background of JS company, status of internal control and the recommendations for improvement of internal controls. Specifically, fund management, sales and accounts receivable management, inventory management and internal oversight elaborate will be expounded. First of all, the thesis will discuss the overall environment of JS company through the internal control environment questionnaire. Secondly, the company funds, sales, inventory, and supervision will be described and analyzed as four systems based on the JS environment. At the same time, a listing corporation will be compared such as HI TARGET company, so that the date will be more convinced. And then, a detailed analysis will be conducted to appear the reasons of the loopholes of the control environment, capital program management and supervision of credit receivables management, inventory management systems and internal controls and other aspects of vulnerability. Also I will propose targeted suggestions for the improvement of internal control of JS company combined with the internal control theory. It will make clear the integrity for environment, marketability for sales, risk for credit, the rationality for inventories and necessity for supervision. Finally it sums up the small and medium-sized enterprises should pay attention to the establishment of internal control, evaluation and promotion, to improve the credit system. The thesis comes over with the limitations and prospects for the future.