Internal Control System Design For Small-and-medium-sized Enterprises

Summary of relevant research institutions in 2010 with small board in the GEM listed companies application for analysis, the company’s small there are four major illnesses:a result of imperfect corporate governance, internal control deficiencies, related party transactions complex, earnings manipulation, there is one main business product and customer concentration risk, chronic illness in the four internal control weaknesses in the top. The company is a small private enterprises, usually family management, the biggest shortcoming is prone to inadequate corporate governance structure, most of China’s environmental technology companies are SMEs, currently no comprehensive, standard industry internal control system. Therefore, this paper ACD companies on behalf of environmental technology companies preparation phase of the internal control system is modeled, and then design and construct a line with "the basic norms of internal control" and "Guidelines on internal control supporting" internal matching control system, in order to improve the ACD and its environmental protection industry enterprise technology management.April 26,2010, the Ministry of Finance in conjunction with the Commission, the Audit Commission, the SASAC, China Banking Regulatory Commission, China Insurance Regulatory Commission and other departments in Beijing, jointly issued the "Guidelines on Internal Control package," which, together with supporting guidance issued in May 2008 " basic standards of internal control ", work together to build a standard system of internal control in China (equivalent to our COSO report). The internal control system since 1 January 2011 both inside and outside from the first company listed on the purposes, from 1 January 2012 be expanded to the Shanghai Stock Exchange, Shenzhen Stock Exchange main board listed company in operation; in this basis, and to choose the board and in small companies listed on GEM implementation.6 constituted by the majority of this paper. Including the introduction, the basis of the internal control system design theory, the case of corporate governance structure and internal control analysis, internal control system of case design and construction. Are summarized as follows:Part one is introduction. Introduction to some of the major analysis of the research background and significance, this paper describes the basic ideas and logical structure, research methods, innovations and shortcomings.Part two is the basis of the internal control system design theory. Contains the basic theory are:incomplete contract theory, agency theory, stakeholder theory, contingency theory; corporate design of internal control objectives, principles and elements; internal control and corporate governance relationships; internal control and risk management relationship. The theory of the internal control system design and construction provides a strong theoretical support.Part three is the case of corporate governance and internal control analysis. The main contents include:about ACD company profiles, history, ownership structure condition; analysis of volume and structure of its main business, industry conditions, the characteristics of corporate governance. Case status of internal control system and made the following note:organizing and business development strategies, human resource situation, R & D systems and project management systems, procurement and sales operations, financial management. And analysis of its control environment, risk management, control activities, means of control. The status quo while the causes for this preliminary analysis.Part four is the internal control system in case the design and construction. The main contents include:internal control system design process analysis; enterprise environment, Design and Construction (Health established a sound corporate governance structure, sound health legislation for development of the company’s human resources systems and mechanisms, the establishment of corporate culture transmission mechanism); operating funds design and construction of internal control (internal control table through the financial operations and capital in the form of operational control flow statements); Asset Management Design and Construction of the internal control (internal control table through the inventory of assets, inventory control the flow chart in the form of business representation); the internal control of the design and construction (through the internal control table expression); sales design and construction of internal control (through the sale of the business critical risk control points and control measures in the table, sales control flow statements); overall budget on design and construction of internal control (key risks through a comprehensive budget control points and control measures form a comprehensive business process diagrams the budget presentation.)Part five is environmental protection technology for improving Construction of enterprise internal control system. This section contains the main contents are: environmental technology company internal control system intended target, the proposed framework of internal control system business ideas, corporate internal control system intended to improve the direction.Part six is the conclusion and summary. The full text of some of the research on, get some conclusions and enlightenment.This paper proposed the company’s environmental technology companies ACD corporate governance system, management system, organizational system, the basic situation of the financial’system and management risks associated with the process were investigated and analyzed. According to the basic theory of internal control design and the latest release of "Guidelines on Internal Control matching" analysis of its lack of business management process, explores the reasons for insufficient cause, and according to the actual situation, analyzes the business activities of the business processes of related business processes are classified, and classified the design and construction of the urgent need to address the impact of its operation and development of the internal control system. These internal control system are also available for relevant industries and enterprises for reference. At the same time environmental protection technology is proposed system of internal control should be a concern some of the major aspects and links. Therefore, the main contribution of this paper are:1. A comprehensive analysis of the ACD enterprise’s internal control system, its business activities carried out combing operations, design and build a classification system of internal controls need to be resolved.2. Presented the proposed environmental technology system of internal control basic aspects that need attention.Environmental protection industry in technology-related internal control system is not available for reference system, its design based primarily on the design of the data collected, so the design of this system arrangement, the integrity of the contents are still a lot to enhance and improve place, of the depth and breadth is not enough to improve the internal control system design and the actual detailed work yet to be tested.