Research On Internal Control In The Perspective Of Supply Chain Risk

The internal control system is an important component of the company administration, and is also a basis on which enterprise operating activities relying for proceeding as planned. Internal control is always the focus of debate theoretically and practically. Recent years, internal control and risk management become approach until integrate with each other. In the situation of marketing competition increasingly, supply chain comes as a new enterprise-operating philosophy. Becausu of the anfractuositie of structure, instability of environment, and so on, supply chain is having been more and more subject to affected by all kinds of risks. Onces some certain risk really happens, it will cause huge damage and incalculable loss, even thorough disruption of supply chain. Reseaching on internal control in the view of supply chain risk can mitigate even avoid the loss caused by risk, making supply chain more resilient. It also can improve the operation efficiency of internal control, which are helpful to the continuous development of corporation.In the view of this, this paper mainly researches on how to design internal control in the perspective of supply chain risk. The main content is as follows:(1) The article clearly tells the background of the research, purpose and the overall framework. It also defined the concept of internal control, supply chain and supply chain risk.(2) The article mainly recalls the development of internal control both at home and abroad, particularly analyzes the relationship between internal control and risk management.(3) Based on the analysis of supply chain risk, combining with COSO Risk Management Framework, this paper designs the theoretical framework of internal control, which including some objectives and eight elements.(4) Fourth and fifth chapters are the key points of this article. They divide the internal control system into two parts. One is company management level, which includes optimizating the environment of internal control, constructing the information platform and perfecting early-warning mechanism of enterprise. The other is business process level, which includes purchasing procedure, production/inventory procedure and sale procedure. It will improve the operationality of internal control system.So, the study of this paper will drive the development of internal control more deeply. It's also helpful to put the significant in practice.