Research On Some Problems Existed In Chinese Middle-and-small Enterprises' Internal Accounting Control And The Countermeasures

Internal accounting control is very important to the enterprises. It can improve the quality of accounting information, and the awareness of protecting the risk, regularize the business and management, enhance the running effectiveness, as well as protect the assets of the enterprises. Recently, with the development of our national economy, middle-and-small enterprises have been the important forces of supporting economic growth, absorpting working population and maintaining economic and social stability. But, meanwhile, they show the low-standard, weak-basis, lack-internal accounting controls or failure as a result of their own characteristics, such as combination together widespread existence ownership and the management powers, the simple structure of organization and the single nature of business enterprise etc. This has a direct impact on their economical benefit and development, even affects their survival. It is of practical importance to conduct research on their internal accounting control so as to build up an organic relationship between internal accounting control regulations and middle-and-small enterprises.This paper uses the method of combining theoretical and case analysis. It is beginning from studying on the theories of middle-and-small enterprises'internal accounting control, combined with the middle-and-small enterprises'own characteristics and raises problems about Chinese middle-and-small enterprises'internal accounting control, and based on the COSO report and our internal control standard elements and drawing on internal accounting control norms, and other related documents, embarking from the goal of internal accounting control in pioneering period, growing period and maturing period it finds countermeasures in enterprises'different life cycle. From the general to the specific, linking theory with practice, at last this paper chooses a middle-and-small Industrial manufacturing enterprise to research its internal accounting control. This part not only from the level of basic elements level analyzes its internal accounting control, but also from the business process perspective studies the internal accounting control of currency capital, purchasing and payment, sales and collections, physical assets, production and so on. Then this part follows previous theoretical study and improves and perfects the internal accounting controls. This part specially using process control methods, according to the characteristics of enterprises, designs and improves the business processes. It is hoped that this paper could provide assistance to design and perfect the internal accounting control of our middle-and-small enterprises.