Research On Internal Control Environment Of FAW Fuwei Parts Company

The importance of the internal control environment of an enterprise cannot be overstated;it is the foundation of its internal control system.The enterprise’s rapid growth,with its emphasis on market growth and product research and development,has overlooked the need for a strong internal control environment for long-term stability,leaving many potential risks unexplored.Management’s lack of attention to the internal control environment is largely due to traditional management methods,which cannot adequately demonstrate the efficacy of internal control.Consequently,it is essential to enhance the internal control system and bolster the building of the internal control environment.On the whole,there is a large development imbalance in China’s auto parts industry.Domestic auto parts enterprises are small in scale,relatively backward in technology,and lack sufficient research and development capabilities and market share.Domestic and foreign capital or joint ventures have greater advantages in technology,research and development and marketing,and their operating income is relatively high,thus occupying a greater advantage in market competition.The auto parts industry is currently in the stage of development and upgrading in China,and the competition between them has become more intense.The state has long held internal control of enterprises in high esteem,for it not only aids the steady growth of these businesses,but also fosters social stability.Moreover,the impact of such control activities is also a determinant of the market competitiveness of these enterprises.The internal control system’s foundation is the internal control environment,and this is of paramount importance to businesses,as it is essential for the successful functioning and flourishing of their operations.To sum up,enterprise internal control is of great importance.This paper delves deeply into the internal control environment of FAW Fuwei Parts Company,analyzing the present state of affairs,summarizing the difficulties,examining the sources of these issues,and ultimately unifying the pertinent theories to create optimization tactics to assist FAW Fuwei Parts Company in enhancing the internal control environment.Offering a more comprehensive internal control framework,this work will also supply pertinent and successful advice for related auto parts companies,with the aim of aiding more businesses in enhancing their own internal control environment.Additionally,it will serve as a benchmark for their own internal control construction..This paper,utilizing literature research,case study and investigation and analysis methods,examines and evaluates the internal control environment of FAW Fuwei Parts Company.It is determined that the primary issues in the internal control environment of FAW Fuwei Parts Company are the inadequacy of its organizational structure and the existing literature on internal control system theory.unreasonable development strategy,the defects in human resource management,and the lack of attention to corporate culture and social responsibility.By analyzing pertinent literature and utilizing applicable theoretical knowledge,the following optimization strategies are suggested to address the current internal control environment of FAW Fuwei Parts Company : enhancing the organizational structure,cultivating the necessary number of middle management personnel,introducing office software,improve work efficiency and promote horizontal communication;Clarify the development strategy of the enterprise,and the management clarifies the significance of the strategy,improve the strategic management system,and realize the flexibility and controllability of the corporate strategy;Enhance human resource management,augment salary and incentive,enhance the training and reserve of strategic talents,compensate for the inadequacies of advancement,safeguard the core competitiveness of businesses;prioritize the formation of corporate culture and the achievement of social responsibility,and enhance the attention of management to corporate culture and social responsibility,establish personalized corporate culture and social responsibility fulfillment,and enhance employees’ pride and recognition of the enterprise.