Research On The Problem And Strategy Of Internal Control Of Small And Medium - Sized Enterprises Based On Risk Management

Internal control system based on risk management is mostly against the manpower, material resources and financial resources limit of small and medium-sized enterprises. Through the analysis of their own situation and development status, enterprises could propose solution correspondingly against their internal control problems and risks; and according to the steps, establish a set of internal control system suitable for the enterprise itself. This paper mainly includes six parts.The first part:instruction. This part mainly introduces the background of the author’s research background and some innovative points. In the literature review, the author reviews the development of this field domestic and abroad, as well as the theoretical research results.The second part:Theory overview. This chapter mainly explains the concept of internal control and risk management as well as its development process. This part also explains the difference and relation between them.The third part:The definition of small and medium sized enterprises and the analysis of the internal control problems. This chapter introduces the definition of small and medium-sized enterprises. Through the analysis of the current situation of internal control of small and medium sized enterprises in our country and the reasons which cause the internal control problems are explained.The forth part:The construction strategy of internal control system based on risk management of small and medium sized enterprises. This chapter puts forward the overall idea, principles and procedures to construct the internal control system based on risk management of small and medium enterprises.The fifth part:Case analysis of N company. Through the case of N company, author could present a more practical situation to readers, which is the construction of the internal control system. Also, author gives the both good and bad references.The sixth part:Conclusion.Through the research of constructing internal control system based on risk management for the small and medium-sized enterprises, author hope to provide some guidance to small and medium enterprises, which could solve their own internal control problems and improve their risk management capabilities.