Study On The Internal Control Issue Of Tobacco Growers' Professional Cooperatives

Internal control is a"cornerstone"of an enterprise's healthy development,is a"firewall"for an enterprise to prevent fraud,and more a"passport"of an enterprise's margin trading.At present,there are 42761 farmers'professional co-operatives in Hunan province and the total investment is 11.3153396million yuan,covering 664894 farmers.Hunan Tobacco Monopoly Bureau found that internal rules and regulations can be evaded in Hunan Tobacco Farmer Cooperative accounted for about 40%,financial management is not standard about 80%,did not execute financial audit for 90%.Combined with the internal control theory,to discuss the factors influencing tobacco farmers cooperatives development level and put forward development suggestions for the improvement of tobacco farmers cooperatives,which can effectively improve the quality of development of tobacco farmer cooperatives."Cooperative"and"internal control"are the keywords in The internal control studies about Tobacco farmers',professional cooperatives.Systematic analysis of domestic and foreign related research literature and especially the analysis of farmers' professional co-operatives introduction to the theory of internal control define the farmers' professional co-operatives internal control.This paper expounds the role of internal control in farmers'cooperatives.According to the related literature and empirical research,the paper analyzes the current situation of Hunan tobacco farmers,professional cooperatives internal control and the existing problems,and points out its' poor control existing poor risk assessment,lacking of control activities,the blockage in information channel and congruent supervision system in the internal control environment.The paper also analyses the cause of the problem.It points out that the backward internal control concepts,serious"insider control"phenomenon,unreasonable equity structure,imperfect governance structure,insufficient capability lead to tobacco farmer professional cooperatives rebirth of the internal control problem.The study puts forward to improve internal control ability of tobacco farmer professional cooperatives,to improve the internal control environment of tobacco farmer professional cooperatives,to evaluate tobacco farmer professional cooperatives business operation risk,to set up the internal supervision system of tobacco farmer professional cooperatives and to strengthen the internal information communication of tobacco farmer professional cooperatives is needed.