A Case Study On Optimization Of Internal Control In M Company

Thanks to the support and guidance of macroeconomic policies,the development of small and medium-sized enterprises in recent years is obvious to all.It has also gradually become the driving force to promote the economic development of our country.However,a prominent problem in small and medium-sized enterprises in China is that they often close down after three years.As the main social employment carrier and the source of public entrepreneurship and innovation,it is imperative to ensure its vitality.The perfection of internal control system can ensure the development of enterprises.Therefore,it is more useful to explore ways to optimize the internal control of small and medium-sized enterprises.M company is a grain production and sales enterprise.With the improvement of people's living standards,the concept of green and healthy eating has become popular.Taking this opportunity,M Company has developed rapidly in recent years,from a small workshop-style small business to a small and medium-sized enterprise.M company is currently in a rapid growth period,and the risks are beginning to increase.Enterprises need an internal control system that matches the development situation to protect the company.This paper selects M company to conduct research,uses field investigation method and questionnaire survey method,and starts from the five elements of internal control,and comprehensively analyzes the shortcomings of M company's internal control.After consulting the relevant literature,according to the Internal Control Requirements for Small Enterprises,author proposes improvement measures and optimization suggestions for the M company's internal control.In terms of controlling the environment,the focus is on supplementing the human resources policy;in the aspect of risk assessment,the risks missed by M company are identified and the countermeasures are given;in terms of control activities,the contents of the supplier's archives and the simple way of screening the procurement suppliers are given.Finally,methods for improving information and communication and internal supervision are provided.This paper believes that the establishment and improvement of internal control is a systematic and complex project.Its comprehensive requirements require it to run through various management and business activities,and must be balanced in design.The establishment of internal control must be based on adaptability as the primary condition,combined with the principle of cost-effectiveness and importance,without consuming too much cost and achieve the purpose of control is the ultimate goal.The imperfection of internal control mainly comes from the lack of risk awareness of leaders.In addition,the countermeasures proposed in this paper are very effective for M company,and the company which similar to M company can also refer to.