The Research On The Risk-oriented Internal Control Of The Enterprise Inventory

Since the internal control mode comes into being, it has attracted the attention of people. However, this mode has not been used in practice perfectly since its birth.As the global economy changes greatly in the 21st century,enterprises contact more closely with the environment outside. The limit of internal control is becoming more and more obvious. With a series of cases of fraud in the well-known enterprise revealed,it brings unprecedented pressure to theoretic and practical fields. All these force us to focus on risk-oriented internal control approach again and continue to do research on this to improve it.Ministry of Finance in its draft for comment of enterprises internal control 2007 states that it is necessary for us to adopt risk-oriented internal control. Based on above background, the thesis tries to introduce the recent foreign production, and make a systemic and signification research on the inventory internal control from the aspect of the risk-oriented.The whole thesis is composed of introduction and main body. In the introduction, the thesis summarizes the related background, purpose and methods. The main body consists of four chapters.Chapter 1: Internal control of enterprises and risk management. The thesis states the present situation of internal control research in domestic and overseas, and discusses the relations of internal control and risk management. Firstly, the thesis talks about the five stages of development of foreign internal control research and status of research in domestic. Secondly, the author analyzes COSO risk management Framework. The author points out that COSO risk management Framework is the newly research result of internal control theory and practice. The Framework develops traditional three-elements of internal control into five-elements, and put risk into internal control framework as a basic element. Thirdly, the author analyzes the inner relationship between internal control and risk management of enterprises. It is the necessary of developing tendency from the traditional internal control to risk–oriented internal control mode. The author thinks the concretizing of internal control and risk management is inevitable.Chapter 2: With COSO risk management Framework, the thesis explores the inventory internal control from the aspect of the risk-oriented.Firstly, this chapter discusses the signification of the inventory and inventory internal control. In addition, the author then points out the aims. Secondly, the author discusses the design of the inventory internal control, including the inventory business process, inventory internal control, and monitoring. In addition, we should comprehend the inventory internal control from two aspects: the one is inventory control of business process control; the other is value register control. Finally, the author analyses the risk of inventory internal control from internal control environment, inventory internal control system, information, communicate and intendance, and takes corresponding measures to tackle it.Chapter 3: The thesis takes a case for example and analyses from the aspect of risk management, which is the stress of this thesis.Firstly, this chapter talks about the background of Changan Ford Mazda Automobile Co. Ltd, and discusses the traits of internal control mode and inventory internal control system. The author thinks about the most traits in inventory internal control system of Changan Ford Company is the supplier audit and modern logistic measures in inventory management. Secondly, this chapter discusses about inventory internal control from risk management. The author states the aims of inventory internal control, and analyses the inventory business process of Changan Ford Company, including material purchasing, carrying, receiving, storage, checking, picking and shipping. Based on above analyses, this chapter points out the risk of the inventory business process, and take corresponding measures to deal with it. Finally, the author introduces the self- estimate system of inventory internal control in Changan Ford Company.Chapter 4: The author put forward some advice to help carrying out risk-oriented inventory internal control in China.There are some contributions in this thesis: 1. The research angle is innovation. Although most recent studies dwell on internal control of enterprises at home, risk-oriented internal control of enterprises is less. Therefore, the author studies the inventory internal control of enterprises in china with the angle of risk-oriented, in the hope of providing theoretical guide for the development of China risk-oriented internal control.2. The main content is innovation. Firstly, the author bands risk and internal control together, trying to set up risk-oriented internal control mode, in order to improve the internal control effect. Secondly, the thesis studies the inventory internal control not only comprehend elements of the framework, but also go deep into business process, exceeding the traditional research view.3. The final innovation is in the collection of updated and detailed materials at home and abroad. It makes the thesis much more convincing and persuasive.