Case Study On E Company

Internal Control is one of the success key for running a business because it is a scientific and systematic method for protecting the asset. Therefore, many research professors have spent a lot of time on internal control. In 1987, COSO committee had announced COSO report to point out five main components: the control environment, risk assessment, control activities, information and communication and monitoring. The Canadian Institute of Chartered Accountants had also published COCO report. This report emphasized on four main elements: objective, commitment, continuing learning and monitoring and twenty standards. In 1996, the Ministry of Finance of the People's Republic of China has issued Auditing Standard No. 3: Independence". From above research, internal control takes an important roles for the success of the company, its enhances the efficiency, cost reduction and avoid any fraudulent activities.The main purpose of this thesis is to suggest a series of solutions which match with the concept of COSO report and to improve the internal control activities of a wholesaler: E Company. E company, a printer wholesale company, has a high percentage of market shares therefore it has the similar activities of other wholesales company or retailer company. Then, E company faces the similar problems that faced by other similar companies, so I also hope those suggestions that can be useful for other similar companies. In this thesis, some recommendations covers the areas on the cash sales operation, credit control, inventory level control, company asset control by using some good ideas of Japanese company. In addition, I would like to have some new ideas on the control of demonstration machine which E company has spent a lot of money on this area.