Research On The Procurement Internal Control Of L Construction Group Company Based On COSO-ERM Framework

With the high quality development of China’s economy,the construction industry has become the pillar industry of China’s national economy.And it plays a huge supporting role in improving infrastructure construction,new urbanization development and the implementation of "the Belt and Road Initiative",the coordinated development of Beijing,Tianjin and Hebei,the Yangtze River economic belt and other strategies.The state’s emphasis on construction quality,energy conservation and environmental protection,and the improvement of people’s requirements for supporting facilities promote the transformation,upgrading and development of the construction industry.The purchase business of construction enterprises is not only related to quality,efficiency,cost and other aspects,but also throughout the whole production cycle,with many process links and complex risks.As far as construction enterprises are concerned,they should adapt to the development of the industry,improve operating efficiency,reduce procurement risks and costs,and strengthen their internal control over procurement.In the face of new environment,new technology changes and new risks emerging one after another,COSO has adjusted ERM framework for the first time since 2004.In addition,it officially released the latest version of enterprise risk management framework on September 6,2017,focusing on the integration of risk management from culture,strategy,performance and other aspects to create value for enterprises.Internal control is an important part of enterprise management,which should adapt to the new requirements of the changing environment.This article takes L Construction Group Corporation as the research object,the aim is to analyze how to establish a perfect internal control of procurement.First of all,on the basis of sorting out relevant literature and theories at home and abroad,and based on the content of the COSO-ERM(2017)framework,this article investigates the procurement business and internal control of L Construction Group Corporation through questionnaires and targeted interviews;then it analyzes the current situation and existing problems of the procurement internal control.In response to these problems,a procurement internal control system based on the COSO-ERM(2017)framework was constructed to improve the procurement internal control of the L Construction Group Corporation;at the same time,formulate relevant measures to ensure the smooth construction of the procurement internal control system.Through the research on the internal control of procurement of L Construction Group Corporation,has promoted the company to reduce costs and increase efficiency,improve its competitive advantage,It also provides a reference for other construction companies to improve the management level of internal control of procurement.It is also found that the COSO-ERM(2017)framework is more in line with the needs of modern enterprise management development than the traditional internal control framework,is more conducive to enterprises to adapt to the complex and changing business environment,and it has positive guiding significance for the construction and improvement of the internal control system of Chinese enterprises.