The Study Of Internal Control In Sofa Factory Of Q Furniture Company

Under new economical situation, the operating environment, the business process and the management model are changing dramatically, which put forward unprecedented requirements to the internal control. In recent years, a lot of scandals happened around the world, form the closing down of Barings Bank in UK to the Enron debacle in USA, from the scandal of China Aviation Oil in Singapore to Sanlu poisonous milk scandal, more and more people began to recognize the significance of the internal control. USA, who owns the most advanced capital market, has established laws which regard the establishing, maintaining, evaluating and reporting of internal control as the important liability of the company. In the year of 2008, china government published Basic Standard for Enterprise Internal Control, which marked the beginning of a new era in internal control of China. In recent years, the international standards of internal control system have been introduced to the companies of China. Most of Listed company and many large state-owned enterprises have established internal control system. Yet we also realize a mass of private-owned enterprises are short of necessary internal management, which seriously affect the core competition of private-owned enterprises in our country. To change the status, the author analysis the reconstruction of internal control system in the sofa factory of QuanU company. The first chapter is mainly about the literature review of internal control theory. The second one talk about the development of internal control theory and describe five major factors in this theory. In the third chapter is the representation of the situation of sofa factory's internal control system. In the fourth chapter, author described the whole process of the reconstruction of sofa factory's internal control system. In the last chapter there are some suggestions about how to successfully structure an internal control system.