The Problems And Countermeasures Of Internal Control For Changchun ABC Company

In recent years, the development of China's economic is sustainable and rapid, the small private enterprises as an important part of our national economy, play an important role in the economic development and social progress. In the fierce market competition, small private enterprises are often very successful in the early days, but they often come across the bottleneck in the growth stage of their development, many enterprises have closed down, which has a close relation to the weak internal control system in small private enterprises in China. If internal control system is not perfect and enforceable, the core competitiveness of enterprises will be reduced. So establishing a sound internal control system is very important to the development of small private enterprises. The internal control systems of small private enterprises are different with large enterprises. They should have their own characteristics and adapt to the actual situation. They should be focused on emphasis, easy to operate and implement. It has been several decades from the bud period before the 40s to the theoretical maturity period marked by COSO in the 90s of 20th century. It has been definite that the internal control is a variety of measures and methods set up by the enterprise to protect asset integrity, to ensure true and reliable accounting information, to improve operating efficiency and effectiveness, and to obey laws and policies. This thought has become the basis for the standardization of internal control.This paper firstly sorted out the status of internal control. Secondly, I use the case analysis to analyze the actual situation of ABC enterprise's internal control according to the characteristics of small private enterprises. Thirdly, I used the existing research of the internal control theory and my practical experiences to diagnose their problems. Finally, I got the main idea and recommendations of improving the ABC Company's internal control systems based on the company's development strategy. Paper is divided into five chapters:The first chapter of this article introduces the research background, significance and methods of this paper and then shows this paper's structure and innovation clearly.The second chapter is literature review. This chapter briefly reviews the development of the foreign internal control theory .And then, it summarizes the domestic private small business research results of the internal control. Existing results indicate that theorists and practitioners are very concerned about the internal control of small private enterprises. There are surveys, case studies and empirical research. Studies suggest that implement the internal control for small private enterprises is essential, but there are still many problems. The conclusions for how to further establish and improve internal control system are inconsistent .Because there are different object and no uniform internal control standards for small enterprises.The third chapter is the problems in the internal control of the ABC Company in Changchun and the reasons for the problems. This chapter analyzes the industry characteristic and the situation of the ABC Company in Changchun City, and then explores and diagnoses the chief problems, including the weak control environment, accounting basic working with poor standardization, serious oversight on the internal control of assets, the lack of effective control and so on. That the imperfect control environment, inadequate organization, lack of evaluation mechanisms and corporate culture are thought the main reasons for what issues arise and exist.The fourth chapter introduces the main ideas and recommendations to perfect the internal control of the ABC Company in Changchun. This paper combined with the research results and experience of the internal control about small enterprises at home and abroad and aimed at the ABC Company's internal control brings up the ideas and suggestions to perfect it and focuses on the key control points of the internal control character with industry.These research results not only established a set of suitable and operable internal control system for the ABC company , but also especially according to the characteristics of the construction form an internal control with industry characteristic by detaching the emphases of risk prevention in the internal control processes from business processes. At the same time, this study provides some reference for the establishment and regulation of internal control system of small private enterprises.