Problems And Countermeasures In Internal Control Of Enterprises

In recent years,with the frequent occurrence of fraud in companies at home and abroad,the internal control has become a focus recently and looks an unprecedented prosperity in the academia.Our country has also issued a number of standards and guidelines of internal control.But many companies haven't realized the importance of internal control,and there are many misunderstandings about internal control in enterprise.Even the concept of internal control is very vague in some enterprises.Internal control has not been established in many enterprises,even if established,it shows the low quality.The survival and development of the enterprise is severely hampered.To solve the issue of internal control has great significance for our business development and internal control perfection.It is of great study value and practical significance to identify the problems and propose countermeasures of internal control.Based on management of the company at present group,practical work experience for many years and a two-year MBA,this paper focus on in-depth approach and study on the design and implementation of internal control.And it puts forward improving measures on the internal control system compliance with regulations system and enterprise's development.L Company of the article cited is the BOT project.The operating revenue is composed of two parts:subsidy of garbage and subsidy of generation price.The subsidy of garbage is paid by local government according to the price of BOT agreement when on-grid energy is less than 280 KWH,Otherwise at below the agreed price to pay.Garbage power generation is not the higher the better for income increase of L Company.Companies should seek the grid electricity to maximize revenue accord to the facts.Because L Company has no sales business process,the key control points and risk points is mainly procurement and inventory management processes.Through the analysis of the internal control of L Company,this paper puts forward the existing problems following.First,the corporate governance structure exists in name only.The board of directors and supervisors don't strictly fulfill its duties,not achieve the target of safeguard the interests of the shareholders of the company.The company paid less attention to the procurement.The purchasing is unscientific in function set,not separation of incompatible duties,lack of reasonable system of authorization,thus fails to play the role of mutual check and mutual restraint.Finally,inventory management has the problems of simple acceptance procedures,not safe inventory storage,not limit contact personnel,acquisition procedures incomplete,lack of warehouse management and formalistic of stocktaking.Summing up the above,this paper puts forward the following Suggestions.First,the company should establish and perfect the corporate governance and the supervision system to ensure good control environment.Secondly,the company should perfect procurement control,standardize behavior,clear responsibilities,improve the purchasing process and strengthen the management of suppliers to control the procurement risk effectively.Finally,it should accurately locate the goal of warehouse management,establish the post division of labor system,strengthen storage control,intensify the material receiving and outbound,complete supervision of stock check,and strengthen verification of account to improve the economic benefit.