The Research On Internal Control Of Sales And Receivables Cycle In The Company DSD

After Enron financial scandal in 2001,Toshiba financial fraud and a series of financial scandals have occurred. The lack of internal control is the culprit. realizing the importance of internal control to the sustainable development of enterprises and economy, governments have introduced some related laws to strengthen supervision.Therefore,internal control has become a hot topic in the academic and practical circles. With the rapid development of Chinese capital market, the quantity and quality of Chinese enterprises have been greatly improved, and the importance of internal control in business management is becoming more and more prominent. The internal control is the guarantee of the legal operation, the authenticity of accounting information and the management efficiency. It is not only an important means to strategic management and risk control of enterprise, but also the key to achieving the strategic objectives. Under the condition of the actual situation of enterprises,effective and sound internal control system will not only improve the level of corporate risk management and strategic management, but also it is conducive to the promotion of business performance, enterprise value and social reputation. It is also the only way for the enterprise to keep a healthy and sustainable development.Sales and receivables cycle is the core of enterprise management. At the same time, the internal control system of sales and receivables is of great significance to achieve the goal of maximizing enterprise value. Combining the theoretical analysis with the actual case, this paper analyses the company DSD's current deficiencies in the internal control of the sales and receivables. In the theoretical analysis of it, the author applies the control theory, system theory, information theory, risk management theory and agency theory to expound the internal control theory system and analyzes the risks in the internal control of the sales and receivables cycle of DSD. Based on the five elements of internal control, this paper summarizes and analyzes the current five aspects' situation of the internal control system of company DSD's sales and receivables with the case analysis, so as to sum up the defects of the internal control of the sales and receivables and its specific reasons. Finally, aiming to make a positive contribution to the construction of a scientific and reasonable internal control system of sales and receivables for Chinese Small and medium-sized enterprises, the author puts forward the corresponding solutions and countermeasures.