The Problems And Countermeasures Of Internal Control On Fixed Assets For A Co. Ltd

Fixed assets, as the most significant part of the capital owned by an enterprise, are the key element indispensable to business operating, the means of subsistence without which a corporation cannot live, and the resources for a company to create value with. And with the arrival of the global economic integration and the information ear, high quality of fixed assets is even more an important indicator of enterprise's core competencies. However, due to their longer life cycle and lower liquidity, fixed assets are often overlooked by most of managerial personnel in day to day business, resulting in the managerial chaos, the inconsistency of account with the facts, the lower utilization ratio of fixed assets, and the failure to exploit advantages of fixed assets to the full. And in some enterprises, the fixed assets, as a result of the mismanagement, are even washed away or damaged, bringing about a heavy economic loss and some serious effects on the interests of investors and enterprises' long-term development.The Capex of A Corporation will directly relate to its market competencies and long-term development, at the same time its management of fixed assets is very difficult because its most of fixed assets locate counties which results in very wide range of fixed asset management. What is more, for the company owned by state has been affected by planned economy for a long time, the more complicated organization and staff structure have given rise to many problems in its fixed asset management, such as the unclearness of some fixed asset sources, the duplicated investment, the inconsistency of account with the facts, the lower utilization ratio of fixed assets, etc In the view of the reason above, I have analyzed and studied the internal control over the fixed assets of the company by means of some research and theories related, and based on these analysis and studies, redesigned its internal control over the fixed assets.A Capital management will is an integral part of A's overall financial management infrastructure. it has evolved to become a major role and activity in overall financial management process. Capital investments play an important role in the management of A Co. strategy to compete within this industry changes over time, it is often necessary to realign our business focus with trade-offs between the various uses of cash flow. Therewith, I offer all sets of solution for the Fixed assets Budget for capital expenditures as the methods of my studies and the current situations and development of the studies related to internal control, lay a special stress on analyzing the current situations of the company's internal control over the fixed assets, inquire the problems in its internal control over the fixed assets and the reasons, studies the organization structure for the fixed asset management and the redesign of internal control over the fixed assets, comes up with the suggestions of solving the problems, and from the aspects of the environment of internal control, the implementation clues, etc., explains the factors which must be take into account when carrying out the internal control over the fixed assets in order to ensure that the implementation can be successful.