The Analysis On The Effect Of Operating Revenue Internal Control System Of ABC Company

Many well-known companies have been exposed by the management of serious fraud scandal which led to the case of business failure important to the enterprise inspiration, corporate governance and control activities in daily touch of fraud and scandal led to a key reason, this allows the construction to strengthen the internal control system even greater importance in the enterprise management. How to build Enterprise internal control system to meet the actual business, can be more effective in improving internal management, to maximize the value of the urgent need for all businesses to think and solve problems. And operating income as a source of corporate profits, how to effectively control the loss of business income as the focus of the company.This paper first start from the company overview, introduce the construction of internal control systems and operating income of the internal control system,ABC is the large state-controlled telecommunications operators on the basis of ZLT and ZWT company merged, mainly engaged in domestic and international communication infrastructure services, fixed communication services, mobile communication services, data communication services, network access services, satellite international private line services, business-related information, communications systems integration business and various value-added telecom services,etc.ABC reference COSO framework for internal control system construction guide, specifically consists of two parts: corporate management level and business process, operating income of the internal control primarily associated with the formation of all aspects of composition, including the control of marketing management, billing processing, charging, billing and sharing, revenue recognition and accounting, arrears management, reconciliation of accounting and business management and other links.Based on the full understanding of the company Operating income in the internal control system, this paper first start from the implementation of the operating income in the internal control, detailed description the specific implementation process of the internal management control and business process control, focus on quantitative analysis and trend analysis of the improvement of management indicators and to restore and avoid the loss of operating income after the implementation of Operating income in the internal control system, analysis of the operating revenue internal control management indicators before and after the implementation of the system,it found that during the execution of the operating revenue internal control system makes the ability of the cash inflow from operating income improved; bad debt losses to the enterprise to reduce the risks,arrears situation has significantly improved, effectively reduces the history of arrears, contained the new arrears, improve the quality of the enterprises operating income;gradually shortened payback period of accounts receivable, the quality of recovery increased year by year, effectively enhance the profitability of enterprises operating income, at the same time establishment and implementation of the operating income internal control systems, reduce operational errors in operating income, comprehensive error rate reduced, restore and avoid the loss of operating income effectively, ensure the true, accurate and complete of the operating incomeABC operating revenue in the establishment process of the internal control system has achieved significant results, but there have been some problems in the system on the process of the actual operation, in the internal management control of operating income exists internal control environment of operating income to be improved, risk management needs to be improved, control procedures to be optimized, control information transmission and communication mechanism needs to be improved, control measures need to be strengthened supervision and control, in the business process control of operating income, there is an unreasonable policy of marketing, examination of customer information or customer data entry is not strictly incomplete, business admissible error, not timely billing system parameter update, collection of business is not timely, operating revenue recognition irregularities, differences in accounting and business history, failed to address and the emergence of new individual business differences in accounting and business issues. These problems belong to their corporate governance structure is due to constraints of the operating income of the formation of effective internal control mechanisms, multiple levels and geographically dispersed organization operating income increased the difficulty of internal control operating income, lack of internal pressure, poor risk awareness, risk assessment, lack of effectiveness, implementation of the system is not strong, internal audit department of the company's internal control in operating income inadequate supervision and control, operating income effect of the internal control evaluation and assessment mechanism is not perfect and other factors.Finally, This internal control system for operating income in the actual operation of the problems and incentives for companies that operating income gaps and loopholes in internal control to propose a solution: internal management control in terms of operating revenue continued to improve the internal control environment, implementation of the company the flat, operating income increased the risk control, establishment of efficient scientific management powers and responsibilities of the income internal control system, to strengthen the effective implementation of the operating income internal control system, establish long-term mechanism of internal control operating income, improve the corporate governance structure, establishment of a comprehensive risk management based on risk management systems of operating income; in the business process control management by strengthening the marketing policy, regulate the business prospects of receiving, improve the accuracy of billing system, strengthen the management of business receivables, strict implementation of the principles of operating revenue recognition, improve the system of accounting and business checking, clear management responsibilities in order to establish an effective incentive mechanism, strict control of accepting off arrears from the source, to use of technical means to control the arrears, Rational use of resources to ensure that the objectives of enterprise disk system considered, strengthen team building and other debts to the specific improvement measures.This paper analyzes the ABC Company's operating revenue effect of the internal control system, found in the system is implemented and the root causes of problems and find solutions to this problem ,to continuously refined and improved through, ultimately enhance the core competitiveness of enterprises to achieve the goal of maximizing corporate value.