The Research On Internal Control Of Purchasing In DS Company

The internal control has been paid more and more attention in the organization management, meanwhile, it promotes the development of economy to a great degree. In April 2008, the five ministries issued "Internal Control Evaluation Guidelines". Initially,the internal control assessment was initiated by the government and mainly implement in state-owned enterprises. Nowadays, more and more corporations have realized its necessity and have started to build internal control system. However, the tasks are still in its infancy now and corporations are lack of experience. Corporations are facing a real problem, namely how to apply theory into practice.Since the opening up of China's retail industry in the year of 2004, the retail industry has developed quickly and its total sales continue to grow in recent years. However, the low level of management and other reasons produced many questions while bringing vigor to the China's retail industry development. In recent stage, China's retail enterprises are generally poor in terms of internal control; the risk management level is relatively low; internal control system is seriously missed. Among them, the internal control of procurement is particularly significant.This thesis makes further research on the existing problems of the internal control system of a typical retail company—DS Company based on its internal control of procurement. The thesis uses field interview method and theoretical analysis method to find the essential issues and reasons of internal control system and finally it puts forward the corresponding optimization suggestions. The purpose of this thesis is to improve the internal control of purchasing and establish an effective system in DS Company.Moreover, the thesis wishes to enlighten other retail corporations.This thesis is divided into five parts. The first section is the introduction which represents the background information and significance of this paper and literature review, it establishes the theoretical basis. In the second section, the paper provides the basic theory related to internal control in order to demonstrate the significance and necessity of internal control. The third part describes the fundamental state of DS Company and current condition of internal control of purchasing in DS Company. In the forth part, it does further study to the current status of DS Company. It reveals the existing problems of company according to the five elements of internal control and then analyses the particular reasons of existing problems. The fifth part is the key point of the paper and it provides the improvement measures of DS Company's internal control of purchasing. The paper uses theoretical analysis method and investigating method to improve the internal control system. The basic view of the thesis is that improving the awareness of internal control of management, determining the risk control point,optimizing the procurement contract management of DS Company, strengthening the internal information communication of DS Company and improving the supervision system of DS Company.