Research On Internal Control Of Sales Collection Cycle In GRT Company

At present,China have become the second largest economy in the world.As the development of economy and improve the level,a extensive global market environment is formed gradually as the development of economy,the domestic enterprises have to development through reforming,more and more foreign enterprises entering our market,as a result,competition become more and more in every industries,to promote China's enterprise reform fast.Internal control is an advanced management system.It is important for survival and development of enterprises to establish the internal control system and the implementation of internal control.Internal control is divided into several cycles in the enterprise,such as the circulation of sales and receivables,purchase and payment,production and inventory,and so on.Sales and collection cycle is the core of providing services,selling commodities and collecting money from customers among these,and is an important part of creating value for enterprises.It determines the level of income and profit of enterprises.If there is a risk in this cycle,or cause the loss of the company's assets,or have a serious impact on the continuous operation even.This article takes GRT company as the research object and integrates the internal control theory.First of all,we need to know the situation of the internal control about the company's sales and cash cycle nowaday.Then use the five elements of COSO framework to discussed find the problems in the internal control of sales and receivable circulation,analysis the cause of the problem.At last,improves the existing problems and puts forward the design from several angles: enterprise environment,human resources,risk awareness,control activities,information communication and supervision.To establish a suitable internal control system for GRT company about sales and collection cycle can play a positive role in promoting the company's development,enhancing the competitiveness of the industry,and helping GRT to be listed.Research on the internal control of sales and receivable circulation in GRT company could guide the improvement the other control processes within the company,it also has reference significance for other enterprises of the same scale and the same industry at the same time.