The Improvement Research On Internal Control System Of Cash In HNG Tabacco Industry

Cash internal control is a series of mutually restraint and co-ordinated methods orprocedures to ensure cash’s safety and integrity, make the receipt and payment of cashreasonable and legal and make the information of cash correct. Cash, regarded as the"blood" of enterprises, has characteristics as strong liquidity and high risk, and thus iseasy to be stolen, misappropriated or corrupted by lawbreakers. Recent years havewitnessed a phenomenon that cash theft cases emerged in an endless stream. Theamount is big and the range is wide. All these shocked us. Such cases are largelycaused by the failure of internal control, especially the currency capital control.Recent years, with the promulgation of Basic Norms of Internal Control, theconstruction of internal control system has been put more focus on. Chinese tobaccoindustrial companies, walking towards modern mode of the standardization ofmanagement, are facing with the innovation of internal control system. HNG TobaccoIndustry, as a representative of all tobacco industries in China, its cash internalcontrol system is relatively weak. It has high risk in the purchasing and transportationof tobacco leaf. At the same time, the purchasing of raw materials needs a largeamount of money. The Group Management Model has problems in the management ofthe cash in its branches. These are all urgent problems. Therefore, this study ispractically significant.After viewing related papers, this paper first investigates the characteristics ofcash and the effect on the company’s internal control system, believing that cashinternal control system is good to strengthen its management and economic benefits,then divides cash business into three categories, as planning and allocation, receipt andpayment and checking, to study. In the following chapters, it analyzes the existingproblems by the five elements of internal control and theories of principal-agent,decentralization and human nature supposition. Then, it gives suggestions to improvethe cash internal control system. This paper also gives a redesign of the cash internalcontrol system of the company and optimizes related operation process.