Research On Optimization Of Internal Control Of Material Purchase In ZT Construction Company

ZT construction company is a large construction enterprise subordinate to China Railway Construction Corporation.As the state increases the regulation of the construction industry and constantly introduces new industrial policies to standardize the operation,the company is facing an increasingly severe industrial environment.At the same time,the company has some defects in the internal control of procurement business,which leads to the procurement of low quality and high price of materials,under-purchase and re-purchase,affecting the progress,quality and even efficiency of the project.Therefore,the company urgently needs to strengthen the construction of internal control system to make the internal management fine and efficient,so as to achieve low-cost,efficient,high-quality production which responding to the national call.The dissertation takes ZT as the research target.In the case analysis part,the paper firstly identifies the main risk points in the procurement.After that,it objectively presents the ZT’s internal control of procurement.Based on correlation theories,lots of defects are dissected.With regard to risk control of procurement schedule,the company has problems such as inefficient approval process,non-standard plan management,loose access mechanism and poor contract management.In the aspect of risk control of procurement cost,there are some problems such as imperfect price management mechanism,inadequate financial system,unsatisfactory budget control and lax transportation control.In terms of risk control of procurement quality,quality is not controlled at the source.There are also problems like nonstandard acceptance system,poor management of waste materials and lack of quality traceability mechanism.After that,the dissertation analyzes the cause and presents objective countermeasure to optimize procurement internal control setup and hedge the procurement risk.At length,the dissertation proposes the safeguard measures for optimizing countermeasures,to build an effective environment for internal control.This dissertation adopts several analytic methods to study its procurement internal control problems as well as introduce countermeasures,which can make the company’s purchasing organization setting and business process more standardized which are meaningful.It can also improve internal control system and promote the company to achieve development goals.By the way,it may provide reference ideas for the whole construction industry to strengthen internal control and promote the steady development of the industry.