Research On Internal Control Of Anhui Province Specialized Farmers Cooperatives

Since the reform and opening up, it has always been a major issue for agriculturaldevelopment in China how to achieve the integration of farmers’ small-scale business andfierce modern agricultural market competition. In this context, farmer cooperativeeconomic organizations came into being. Practices has proved that the farmer cooperativeeconomic organizations with the main representative of specialized farmers cooperativescan effectively improve farmers’ sense and competence of organization to achieve scaleeconomies. They have a broad development prospect as an important channel to increasefarmers’ income, also an important carrier to realize the transformation and upgrading ofChina’s agriculture.Internal control serves the enterprise’s internal management as an integral part of anykind of management in economic organizations. Specialized farmers cooperatives hasbrought new growth points to China’s agricultural economy as an emerging form of ruraleconomic organization. However, there are some problems in internal control, such as poorcontrol environment, weak ability to resist risks, few control activities and invalid internalsupervision. Therefore, it is of great theoretical and practical significance to conductevaluations and researches on the internal control of specialized farmers cooperatives, toseek the key influencing factors, to explore the correlation between internal control and thecooperatives’ performance, to improve the construction of internal control system of thefarmers specialized cooperatives, and to promote their sound, long-term and sustainabledevelopment.It has been a long time that specialized farmers cooperatives were established inChina’s rural economy, there is a growing number of researches made by domestic expertsand scholars on them, but the researches on their internal control are rather limited, theempirical researches based on the internal control of specialized farmers cooperatives isalmost blank. Accordingly, this paper is going to have a profound and in-depth researchbased on the research methods such as literature review, questionnaires, field interviews,empirical analysis and case analysis. For example, the paper tries to make clear internaland external research status through literature review; to know comprehensively about thestatus of internal control of specialized farmers cooperatives in Anhui Province throughquestionnaires and the mean value analysis, and make an in-depth analysis of internalcontrol problems that exist in farmers specialized cooperatives of Anhui Province; to study the factors influencing internal control of them and relationship between internal controland net assets of return through multiple stepwise regression and unary linear regressionanalysis; to summarize general conclusions and put forward pertinent comments andsuggestions in order to further promote and improve the internal control of specializedfarmers cooperatives. In the last part, the paper makes a case analysis of Lemin RiceDevelopment Cooperative, a provincial model community in Anhui Province, in hope thatthe experiences from the implementing internal control of the typical specialized farmerscooperatives have proliferative implications for other cooperatives.