Research On The Optimization Of Internal Control Of Procurement Business Of YR Construction Compan

As one of the five pillar industries of China,the construction industry is gradually moving towards scale and innovation with the development opportunity of "One Belt and One Road" initiative.Therefore,material procurement business occupies a pivotal position in the operation of building construction enterprises and is a key link in the internal control of enterprises,which should be given some attention.However,at present,the research on internal control of construction enterprises in China is mainly from internal control system reform,financial risk management and cost control,etc.,and there are fewer studies that analyze the risk of procurement business and its internal control in depth.Taking YR Construction Company as an example,this paper analyzes in depth the risks faced by procurement business and the current problems of internal control,analyzes the causes of the problems,and proposes countermeasures for improving internal control in response to the causes.Using the literature research method,this paper reviews relevant studies on internal control of procurement business in construction enterprises,summarizes the risks usually faced by this link and its internal control means;through understanding the current situation of YR Company,it uses the flowchart method to summarize the main risk points and key control measures faced by the company’s procurement business.Then,by issuing questionnaires,formal and informal interviews,field observations and inquiries to the company’s management and grassroots employees to understand the design and implementation of the internal control of the company’s procurement business,this paper analyzes the problems of the internal control of the company’s procurement business from the perspective of the five elements of internal control and finds that YR Company has the problems of management not paying enough attention to internal control,organizational structure and personnel promotion unreasonable incentive mechanism,imperfect risk assessment system,unsound control activities,lack of effective internal and external information communication mechanism and weak internal supervision.Based on the understanding of the internal control problems,this paper proposes improvement measures for the internal control of YR Company’s procurement business in five aspects: improving the internal environment,improving the risk assessment system of material procurement,improving the control activities of procurement business,strengthening internal and external information communication,and improving the internal supervision mechanism.On the one hand,the research of this paper contributes to the improvement and continuous optimization of the internal control of procurement business of YR Company,and on the other hand,the analysis and summary of the main risk points and control points of procurement business and the main problems in the process of building the internal control of the enterprise in this paper are helpful to provide reference and reference for other similar enterprises in China.