Research On Optimization Of Internal Control Of M Thailand Company

With the increasing scale of China’s foreign investment,China and Thailand ’s external trade appears to be more and more active.A number of large-scale projects of Chinese enterprises have been put into operation in Thailand,and the production and operation progress smoothly under the epidemic,especially after the opening of the China-Laos Railway,which has driven the trade between neighboring countries.The recurrence of the epidemic,the recovery of exports,the change of people’s consumption,the container service industris meet superb chances,but the competition between enterprises incandescent,policy,exchange rates,market changes and other external factors forced enterprises face huge risks.Establish a good internal control system,play internal control to improve performance of enterprises,in other word,internal control becomes a favorable grasp of the enterprise revitalization of the economy,has become an urgent task.M Thailand is a Chinese-funded subsidiary established in Thailand.The company provides container maintenance,stacking,hauling and conversion services.Under many favorable external environment,the company’s revenue has been at a peak since the last three years,but the cost is rising faster than the revenue,and there is a decline in gross margin.In addition,the company also has internal processes that are not standardized,cultural differences,lack of a dedicated risk management department,and inadequate safety production management,which seriously hinder the pace of development.The paper takes the COSO internal control framework as the theoretical basis,the current development of the company and external environment,and draws on primary data and my past experience in this company to analysis the problems from five elements(1)internal environment,(2)risk assessment,(3)control activities,(4)information and communication,(5)internal monitoring.The impact of internal control elements on the effectiveness of internal control was transformed into a quantitative questionnaire using the Richter seven-level scale,and a combination of correlation analysis and regression analysis was used to analyze the effectiveness of internal control.The company has the problems of weak internal environment,lack of risk assessment,insufficient control activities,poor information and communication,and weak internal supervision.To ensure the implementation of the program,the company has been improving the internal environment in terms of corporate strategy;improving the effectiveness of risk assessment by founding a risk sector and risk management system;intensifying internal control activities by sorting out business processes,strengthening financial authorization and approval,and implementing a comprehensive budget;enhancing bilingual training and promoting the OA system to ensure smooth information and communication;and strengthening internal supervision by establishing an internal audit department and increasing safety control.In order to ensure the implementation of the program,effective safeguards are provided in terms of enhanced risk awareness,human resources and financial resources.In summary,the quantitative and qualitative study of this paper can provide a reference for the company’s leadership to make decisions and for multinational companies operating overseas to improve their internal control.