Research On Internal Control Of External Investment Of FY Tobacco Company

With changing market conditions and increasingly fierce competition,the core business of many enterprises has been adversely affected.Against such a backdrop,companies seek new ways of capital appreciation,such as external investments.In doing so,they hope to profit from their investments and promote their development through investment synergy.State-owned enterprises(SOEs)fundamentally differ from privately owned enterprises in the area of investment.Considering such issues as the loss of state-owned assets that may occur in the investment process,SOEs attach paramount importance to their investments and have taken a series of measures to strengthen their asset management.Before making investments,SOEs must exercise extra caution,familiarize themselves with the macro-economic conditions,obtain comprehensive knowledge of the market and fully assess their own strengths so as to minimize investment risks.Like many other enterprises,tobacco enterprises have been actively involved in various investment activities in recent years in pursuit of capital appreciation.In the face of many uncertainties,they must continuously improve their internal control.Despite numerous researches at home and abroad on corporate internal control concerning investments,the root problems are yet to be discovered and effective solutions are still unavailable.Through doing literature review,conducting investigations and case studies,his paper analyses the current practices of FY Company's internal control of its external investment,explores the company's existing problems and underlying causes in the five areas of internal control,and makes suggestions for further improvements.The research contents of this paper mainly include: starting from the existing practice of internal control of FY Company's foreign investment,after studying and analyzing the relevant literature at home and abroad,the research ideas and methods of this paper are determined,then the status quo of the internal control of FY Company's foreign investment is analyzed,and the main situation of FY Company's foreign investment is understood,and the problems and reasons of FY Company's internal control are deeply understood through questionnaire investigation and current situation analysis,then,based on the result of classification,from the point of view of five elements of internal control,the paper puts forward optimization suggestions to the existing problems of each element in FY Company.This paper employs the basic theories of internal control and investigates the internal control of FY Company's external investments.By exploring the company's existing problems,it provides some suggestions to improve FY Company's internal control over its external investments.By doing so,it aims to raise enterprises' awareness of risk control over their external investments,improve their corporate management and help them increase their profit margin in investments.As the companies studied in this paper is only limited to certain SOEs and data obtained are still far from complete,more related studies are still needed.