Research On The Optimization Of Internal Control Of F Group's Procurement Business

In recent years,corporations are facing increasingly more risks under daily operational management along with the rapid development of market economy.The optimization of corporate internal control plays an essential role in terms of the corporation’s healthy and stable development.As one of the important daily operation processes,merchandise procurement has a vital influence towards corporate’s profits and benefits,therefore,the internal control of merchandise procurement becomes a must have core process among all the internal controls.Having a comprehensive merchandise procurement internal control not only could ensure the product quality and lower down the product cost,but also could prevent the potential risk from collusive and fraud,in order to make sure the corporate orderly development.Corporate F set up in 2000,major in production and sales in agricultural related products.The corporation achieved dramatically development in recent years with the increase in investments in both domestic and foreign markets,especially after the digital transformation in production business.However,in order to keep stable in domestic market and to expand gradually in foreign market in the early stage of development,F corporate has been keeping the strategy of “Performance First,Management Second”.Although right now F corporate has realized the importance of internal control,the long-term traditional “second management” style directly caused the empty of merchandise procurement internal control process.This article relies on the basic theory and factors of internal control,connecting with F corporate detail merchandise procurement business.Firstly,taking the survey to study and explore the existing problems of merchandise procurement process,and based on the internal control 5 factors theory finally finding out the root cause is lacking a complete merchandise procurement internal control system.Secondly,generating out the further improvement solutions to F corporate under the existed production digital transformation background and the basic theory of merchandise procurement internal control.