Case Study On Internal Control Of S Installation Engineering Company’s Purchasing Business

With the continuous development of China’s economy,various infrastructure construction has been strongly supported by the state,and also led to the rise of China’s construction and installation enterprises.Under the guidance of the national policy,the construction and installation enterprises of our country undertake the important task of the national socialist modernization.In order to make more profits in the project installation,some installation enterprises continue to reduce the cost of procurement and ignore the quality of procurement materials,which will cause a huge potential safety hazard to the installed buildings.There are not a few building collapse accidents caused by the quality of materials.These accidents cause huge economic losses to enterprises,but also threaten the life safety of the public.It can be seen that the construction of internal control system of purchase business of construction and installation enterprises should not be underestimated,and relevant systems must be strictly controlled and continuously optimized.At the same time,there are few detailed researches on the internal control of procurement business in China,and the relevant theoretical system still needs to be enriched and improved.Therefore,the research on the internal control system of procurement of construction and installation enterprises has certain theoretical and practical significance.S installation engineering group has contracted a large number of offices,commercial,municipal and other building construction in s city.Its construction and installation business covers many aspects such as oil,medicine,office building,large-scale construction and municipal traffic engineering.It has a large demand for the procurement of installation materials,high quality requirements and representativeness.Therefore,taking s installation engineering group as an example,this paper makes a detailed study on the internal control of s installation engineering group’s procurement business in the form of analysis of its procurement business management methods,field visits,and interviews with relevant internal personnel.On these bases,this paper evaluates the internal control of each link of its procurement business,summarizes its experience and summarizes its existing problems,Analyze the causes of the problems and put forward suggestions to optimize the internal control of each link of the procurement business.On these bases,this paper summarizes the four main experiences of S Group’s internal control of procurement business,which provide the same industry with the construction of a strict supplier access system,a supplier evaluation system combining qualitative and quantitative design,the formulation of standardized material acceptance procedures,and the establishment of an information-based procurement management platform.At the same time,this paper also summarizes the main problems in the internal control of S Group’s procurement business,such as improper control of procurement plan cost,lack of supplier elimination mechanism,low bidding supervision,imperfect procurement contract management,and untimely material payment.After the analysis of the causes of the existing problems,it is concluded that these problems are mainly caused by the poor human resource management of s group,the weak awareness of risk identification and assessment of the management,the imperfect supplier management,the untimely internal and external communication,the lack of internal audit and other reasons.Finally,some suggestions are put forward to optimize the internal control of S Group’s procurement business,such as strengthening human resource management,strengthening risk identification and evaluation in all aspects of procurement,building a strict supplier management system,improving procurement contract management,standardizing payment process,strengthening internal and external supervision,introducing advanced information technology.It is hoped that it can be used as a reference for s group to optimize the internal control of procurement business and for the internal control management of procurement business of enterprises in the same industry.