Case Study On Internal Control Of Purchasing Business Of Material And Equipment Department Of S Company

With the rapid development of China's economy and the vigorous advancement of urbanization construction,the market competition faced by construction companies is becoming more and more fierce.In order to enable companies to stand out from the competition,it is particularly important to establish a sound and effective internal control system.For the construction enterprises,the progress of the procurement business determines the quality and progress of the construction enterprise construction projects,and in the process of procurement,there are usually fraudulent activities such as kickbacks and false bidding,and the amount involved is relatively large.Therefore,it is necessary for construction companies to carry out strict internal control over the procurement business,avoiding the risks brought by the procurement business and eliminating the occurrence of such fraudulent behavior.Based on the above background,this paper selects S company as the case study object,and through the analysis of the internal control of the procurement department of the material and equipment department,it finds the problems in the internal control of the procurement business of the construction enterprise.Specifically,this paper first sorts out the relevant concepts of the internal control of the procurement business,and then analyzes the characteristics of the procurement business of the Materials and Equipment Department.Then it analyzes the internal control status of S company's procurement business,and describes and analyzes the internal control problems that S company emerges in the procurement business.The problems are mainly reflected in the lack of standardization of risk assessment and lack of procurement services.Performance appraisal mechanism and formalization of internal supervision mechanisms.Finally,in order to improve the internal control system of S company's procurement business,this paper puts forward three suggestions for improving the actual situation of S company's procurement business from the perspective of five elements of internal control,specifically establishing a sound risk assessment mechanism and establishing a performance evaluation mechanism.Improve the internal supervision mechanism,which emphasizes that S company should establish a risk assessment mechanism according to the goals of target setting,risk identification,risk analysis and risk response.I hope that I can help improve the internal control level of S company's procurement business and provide experience for other companies in the industry.