The Research Of Internal Control Of SV Company

In the modern socialization production, internal controlling as intrinsic mechanism of enterprise business and management activities of self-regulation, self-restraint, is in the key position of the central nervous system. Enterprise internal control is perfect or not has become the key to enterprise’s success. The internal control is playing a very important role in the enterprise management process. The appropriate use of internal control will help enterprises to reduce errors and violations of rules and laws, is beneficial to prevent risks, to ensure the safety and integrity of the property of enterprise, but also conducive to improving the business activities, rapidly improve the business efficiency, therefore any enterprise in the world should continue to improve and develop internal control system, to strengthen the measures responding to risks.With recent centuries the technology highly developed and electric energy widely used, appliances have become the urban and rural household necessities. SV German parent company is a century-old small household electrical kitchen appliance corporation. Fifteen years ago, In order to meet the needs of development, SV head office established a manufacturing base in a young city of southern China, namely the SV household appliances (China) Co. Ltd., SV company for short. SV company has grown up from a three hundred employees small plant to now two thousand employees medium-sized factory. With the expanding of the company, management becomes more complex and difficult, and the internal control is an important mechanism to promote the management quality. The establishment of the company internal control at present is mainly aimed at the production process related, such as the quality management system ISO9000, Object management, ERP, related corrective and preventive measures.The main content of this paper is the analysis and research of SV company based on COSO five elements:internal environment, risk management status, information and communication, control activities, internal supervision. The followings are SV’s existing internal control deficiencies and problems:the incomplete governance structure, the unreasonable structure of the organization, internal environment disorder, internal supervision deficiency, risk management imperfect, controlling system incomplete. This paper puts forward improving suggestions and measures for the existing internal control problems in SV company from two aspects:Doing risk identification and evaluation by the scientific method, and puts forward the concrete scheme of risk response measures; Setting up a series of internal control safeguards of the company, such as optimization of internal environment, strengthening the construction of organizational culture, combing the governance structure, optimization of personnel management, establishing information communication system in compliance with the company operating status, strengthening internal audit and supervision.Under the fierce competition of household electrical appliances industry in the past two years, the enterprise internal control management is the guarantee of successful operation, this research can provide reference and consult for optimizing internal control, controlling enterprise’s risk and strengthening internal management of SV company and other household appliance manufacturing corporations.