The Research On Procurement Process Internal Control Of HG Grain Company

As the competition in the domestic and overseas market is fierce,the domestic companies have realized that it is vital to construct an impeccable internal control system to guarantee a continuous development of performance and decrease the risk in operation.Procurement process plays an important role in the internal control system.This link through the payment of funds can directly affect the assets and liabilities of enterprises.However,due to the low level of management of agricultural enterprises in China and the poor internal control awareness,inappropriate behavior always appear in this process.This paper use the case analysis method.At first,this paper introduces the research status of internal control of purchasing business both at home and abroad.Then it makes a comprehensive analysis on the processes as well as the problems of internal control system of HG Company.According to the survey results,we can easily find that some of the items in internal control system of HG Company couldn't meet the needs of organization or update in time at present,there is no supplier evaluation system and the acceptance process can't play an important role.The paper also gives advices corresponding to the problems existed in internal control system,such as optimize the organization,reinforce the management in making contracts,build evaluating system to the procurement,etc.and try to be useful to other similar companies.