The Research On The Problem Of Internal Control On Sales And Receivable Collection Of LMC Company

As the continuous development of economic internationalization in China,the competition between different enterprises has become more intense. Operational risk in each enterprise is increasing as well because of such phenomenon. In order to reduce operational risk, within the operation of modern business,internal control has attracted people's attention. Internal control acts as a basic system process through every production and operation process within the enterprise. It is a core concept that ensures the health of the whole enterprise while developing.Nowadays, regarding the enterprises in our country, the process of developing internal control has reached the stage where the practical operation needs to be realized and the management level needs to be improved. However, due to the initial start of putting specific internal control into practice, lack of experience is the issue that most of the businesses are suffering. How to make use of internal control in different departments within the organization has become a major problem. The process of selling and collecting funds are two major parts that gathering revenue, thus, enterprise should lay more attention on the internal control with regard to those two departments. As a state-owned enterprise, LMC Company focuses on producing chemical and industrial products. During the past few years,as the development of economic, LMC is now facing heavy pressure from other competitors including strengthen its business management, perfected its internal control especially the sales and collection. Currently, internal control in LMC is under exploration as such measurement in sales and collection department only implement for a short period of time.During practicing, there are still some problems that need to be fixed.This paper is aiming to analyze LMC's internal control system with regard to its sales and collection, getting to know its problem, analyzing its formation and finally to seek some solutions.This paper is divided into six parts. First part is the introduction. Mainly discusses the research background, methods and so on. The second part is about the internal control theory.Mainly introduces the basic concepts of internal control,sales and collection cycle internal control definition, sales and collection cycle of business processes. The third part refers to LMC company sales and collection of internal control status quo. This paper introduces the basic situation of the company, the internal control situation of LMC Company, the current situation of sales and collection of LMC Company. The fourth part, LMC company sales and collection business internal control problems and causes analysis. Explain from the internal control of the elements of the company's actual problems. The fifth part aims to improve the LMC company sales and collection business internal control issues. Finally, conclude the whole paper, summarize the full text.