The Study On The Small And Medium-size Alcohol Enterprise Internal Controls Of Sales

Since the reform and opening-up in 1978, the domestic alcohol industry has experienced four stages. The alcohol industry is very sensitive to macro-economic cycles and national policies. In 2012, in order to strengthen the discipline of the Chinese Communist, the Party Central Committee published "Eight Rules" and imposed restrictions on the public consumption. Because of these rules, the consumptions of high-end alcohol dropped sharply, which compelled the alcohol enterprises to reduce the price to grasp their consumers, which leads to drastic price battle and competition. In addition to this, more and more young people begin to drink alcohol, the consumers become more rational and gradually buy wine through internet. With these trends, the alcohol industry faces inevitable transition and adjustment.Under the severe situation, how to achieve sustainable growth on sales is a very hard challenge for every alcohol company, especially for those small and medium-size companies. Compared with listing alcohol companies, small and medium-size companies don't possess famous brand, enough capital and effective management, which impose them more pressure. Just because of this, the alcohol companies need to pay more attention to their internal controls and risk management on sales, and make their management more effective and intensive so that they can enhance the risk management ability.It is a very short time for Chinese companies to construct modern enterprise system, so the level of enterprise internal controls is low for most companies. In order to guide and standardize the internal controls of Chinese enterprise, the Chinese ministry of finance and other four ministries, united to publish China's first "basic standard for enterprise internal control" in 2008. The standard is a very important achievement of the Chinese internal controls research. In order to achieve the sustainable growth of sales, the domestic companies, especially the alcohol companies whose management is very extensive, should combine COSO's internal controls system with the "basic standard for enterprise internal control" and promote their internal controls on sales actively.Based on the real information of ChongQing TB company, follow the principle of combining theory with practice, through different analysis method, under the guide of COSO's internal controls system and "basic standard for enterprise internal control", this paper analyzes the situation of ChongQing TB company's internal controls on sales from control environment, risk assessment, control activities, information and communication, and monitoring. The study exposes the problems of ChongQing TB company's internal controls on sales and gives some advice to these problems.In control environment aspect, the author finds that the company's organization structure is not perfect, the management faces huge sales pressure and the human resource is weak. In order to solve these problems, the author suggests that there should be board of directors, board of supervisors, audit committee. In addition, the goal on sales should me more practical and the human resource should be strengthened.In risk assessment aspect, the author advises the management should pay more attention to risk management. At the same time, the company should improve the mechanism to identify the internal and outside risk.In control activities aspect, in order to solve the problems of sales plan management, customer credit management and price setting, the company should make the sales plan rational and practical, build a system to manage the customer credit and establish an effective process for price setting.In information and communication aspect, the company should establish information systems steering committee and information system.In monitoring aspect, the company should establish perfect continuous supervision mechanism, normalize the process and method of individual valuation. What's more, the company also needs to improve the mechanism for reporting and disposing faults.Through the research of ChongQing TB company's internal controls problems on sales, this paper gives a summary of the common factors of alcohol company's internal controls on sales. On the one hand, it is useful for alcohol company to promote their internal controls on sales. On the other hand, it gives the alcohol enterprise a reference, based on COSO's internal controls system and "basic standard for enterprise internal control", to evaluate their internal controls on sales.