The Improvement Of Internal Control Of Fixed Assets In Hng Tobacco Company

Along with China becoming a member of WTO, signing the InternationalTobacco Control Frame Protocol up and factors of each society sector changing, theenvironment of Chinese tobacco industry has been becoming increasingly complicatedand some new risk factors gathering gradually. It is vital for the domestic tobaccofirms to control their fixed assets in order to develop steadily in the complicatedenvironment, and the inner control of fixed assets is an important part of firmrevolution deepening and modern firm system building.Chinese Tobacco Industry of HNG l.m.t. is a large company in Chinese tobaccoindustry, where it exists government-business issue, line management, monopoly,etc.As a result of the centralized power, it may be easier to produce corruption. So, byestablishing an inner control system of firm fixed assets to avoid corruption andenhance firm management level, firms can reach the goal of preservation andincrement of fixed assets. Also, it is meaningful to strengthen the tobacco monopoly.This paper, first combing the domestic or international relevant research,applying the method of theory analysis, deduction analysis and case analysis, on thebase of full analysis of firm management system of fixed assets and each businessmanagement process, points out the existing problems and risks of inner control offirm fixed assets and discover some problems existing in the Firm: weak awareness ofinner control, imperfection of management system, conducting biases, informationbarrier and lack of inner overseeing system. On such problems, guided by COSO innercontrol theory and embarking from some pivotal sections, such as receiving,inspecting, daily utilizing and preserving, changing, checking and dealing of fixedassets, this paper gives out a series of thought trains and solutions to improve innercontrol system of firm fixed assets, while on this, designs a wholesome and effectiveinner control system and process of firm fixed assets for the Firm. For the Firm, whostill explores on the path of revolution, the perfection of inner control system andprocess of firm fixed assets can be a good start for establishing the whole innercontrol system, enhancing the management level, perfecting firm system andstrengthening the international competitive power.