Research On The Internal Control Evaluation Of Shanxi LJ Chinese Medicine Co.,LTD.,

In recent years,many Chinese medicine companies are frequently exposed illegal drug production activities,these events infringes consumer rights to a certain degree.Fundamentally,the imbalances in internal control of these Chinese medicine companies are undoubtedly the most important reason.In order to maintain good development,Chinese medicine enterprises should establish a comprehensive and effective internal control evaluation system,and improve their own internal control system and strengthen its implementation as well.However,the policies and regulations related to the evaluation of internal control in China starts relatively late.The Ministry of Finance successively introduced the "Basic Norms for Internal Control" and the three supporting guidelines for internal control in 2008 and 2010 respectively.At present,there are only a few enterprises that have a standardized internal control evaluation system.Most SMEs do not have a deep cognition of internal control evaluation,meanwhile,the internal control evaluation implementation effect is poor.Therefore,this article selects Shanxi LJ Chinese Medicine Co.,Ltd.(here in after referred to as LJ Chinese Medicine Company)as the representative of most SMEs.By means of the studying of its internal control evaluation,the paper puts forward the optimized suggestions for the internal control of LJ Chinese Medicine Company,which provides valuable references of internal control evaluation for other non-listed Chinese medicine companies.This paper adopts normative research methods,combined with relevant research of domestic and foreign scholars about internal control evaluation,and then constructs the theoretical framework of internal control evaluation.By means of heading for LJ Chinese Medicine Company to conduct field research,adopting methods of interviews and questionnaires,the paper introduced the current situation of LJ Chinese Medicine Company 's internal control evaluation system in detail from the aspects of internal environment,risk assessment,control activities,information and communication and internal supervision.The article points out the shortcomings of its existing system of internal control evaluation,which serves as a basis for the establishment of LJ Chinese Medicine Company's internal control evaluation system.In the core part,the paper carries out the design process of internal control evaluation of LJ Chinese Medicine Company.Based on the theory of grounded theory and literature reading,the internal control evaluation index system of LJ Chinese Medicine Company was constructed.The weights of the indicators is assigned via analytic hierarchy process,and the scores of indicators at all levels are calculated by fuzzy comprehensive evaluation method.The paper finally comes to the conclusion that the internal control of LJ Chinese Medicine Company was at a medium level.The enterprises had some problems such as weakness in prevention and control in advance,unfavorable internal supervision,etc.,Therefore,the article proposed corresponding optimization suggestions according to the evaluation results.It appeals to the management to strengthen the emphasis on the construction of internal control and to help them improve the evaluation of internal control of LJ Chinese Medicine Company,also provide certain reference value for the future evaluation of internal control of LJ Chinese Medicine Company.The contributions of this paper is mainly reflected in the following two aspects: on the one hand,it enriches the theoretical framework of internal control evaluation theoretically,on the other hand,it builds an evaluation system of internal control for LJ Chinese Medicine Company at the practical level,and provide some suggestions to improve its internal control.In the course of constructing the evaluation system of internal control of LJ Chinese Medicine Company,the theoretical research of internal control evaluation is applied to the actual operation of the enterprise,which is helpful to solve the practical problems existing in the implementation of internal control.