A Case Study On The Internal Control Of Material Procurement In Company Z

The global pandemic and the turbulent international political climate have created increasingly complex and challenging economic conditions both domestically and abroad.Effective establishment and implementation of internal controls can assist enterprises in managing operational risks and achieving stability in their operations.The effective establishment and operation of internal control can help enterprises control operational risks and achieve operational stability.Material procurement,as a starting point of the flow of capital and logistics within an enterprise,plays a vital role in ensuring the profitability and normal operation of the enterprise.This article aims to contribute to the sustainable and stable operation and long-term development of enterprises by conducting research on the internal control of material procurement and providing recommendations for optimization.This thesis focuses on Company Z,a construction enterprise,and examines the internal control measures implemented by the company for its material procurement process.By considering the characteristics of material procurement in the construction industry and taking the specific circumstances of Company Z’s procurement practices into account,this study aims to shed light on the importance of effective internal controls.Firstly,the article presents an analysis of Company Z’s internal control over material procurement in five aspects,including material planning and supply management,supplier management,procurement process management,acceptance and contract settlement management,and material procurement work assessment.Each aspect is evaluated in terms of control objectives,key risk points,control measures,and implementation.Secondly,this thesis constructs an internal control evaluation system for material procurement from both the overall level and the process level.By combining the evaluation system with Company Z’s control objectives,the evaluation result shows that there are no significant defects in the internal control of Company Z’s material procurement.However,there are some issues that require improvement,such as internal control defects in material planning and supply management,which are analyzed in detail.Finally,this thesis proposes targeted suggestions for the issues found in the internal control of Company Z’s material procurement,such as optimizing the overall process of material planning and supply management,and introducing budget management into material planning and supply management.This thesis focuses on the infrastructure industry,which has received relatively little attention from scholars.Company Z,a leading company in the infrastructure industry,is selected as a case study,and analyzed by using the internal control five objectives theory.This study not only provides effective optimized paths for the internal control of material procurement in Company Z,but also offers valuable references and insights for other infrastructure enterprises to enhance internal control systems for material procurement.