Study On Effectiveness Evaluation Of Internal Control Of Procurement Business Of Z Company

Since the emergence of COVID-19,the world economy has been affected to varying degrees,with China’s economic development slowing down and competition in various industries becoming increasingly fierce.At the same time,some enterprises began to appear due to the weak internal control and business risk exacerbation phenomenon,internal control as an important means of enterprise risk management,quality and efficiency,also received more and more attention.Procurement business,as a key link of enterprise business activities,is the premise of enterprise organization of production,sales and other activities,and there are a lot of risk factors,if the control is not good,it will lead to high price and low quality of enterprise procurement materials,even the production and operation of the awkward situation.Therefore,it is particularly important to enhance the effectiveness of internal control of enterprise procurement business.In this paper,Z Company is selected as the case study object.First,from the level of system design,it analyzes the division of responsibilities and specific operation process of related departments of procurement business of Z Company.Through comparative analysis,it evaluates the existing internal control system of procurement business of Z Company,and finds out the existing problems and defects in the design level of internal control system of procurement business of Z company.Secondly,from the level of implementation effectiveness,the analytic hierarchy process and fuzzy comprehensive evaluation method are adopted to build an evaluation index system,evaluate and score all related indicators of internal control of Z company’s procurement business,and then analyze the problems existing in the implementation of internal control of Z company’s procurement business combined with the walking test.Finally,in view of the problems found above,the corresponding optimization suggestions to improve the effectiveness of Z Company’s internal control of procurement business are formulated.Through the research,this paper finds that:(1)the internal control of procurement business of Z company is relatively excellent in the level of system design,but there are some unreasonable designs in the internal control systems of procurement plan management,supplier management and procurement process management.(2)The effectiveness evaluation of Z Company’s procurement internal control implementation level is basically effective,and the internal control is basically implemented,but there are still problems such as "insufficient attention of the management,poor management of suppliers and chaotic management of the procurement process";(3)In view of the above problems,combined with the actual operation situation of Z Company,this paper puts forward some suggestions for Z Company to improve the effectiveness level of internal control of its procurement business,including:enhancing the awareness of internal control of the company’s management,improving the current situation of supplier management,improving the procurement risk assessment system and improving the overall quality of employees.Finally,by analyzing the effectiveness of Z Company’s internal control of procurement business,this paper hopes to help Z Company improve the effectiveness of its internal control of procurement business and promote the sustainable development of the enterprise.