Construction Of Internal Control System For Stated-owned Grain Purchasing And Marketing Enterprises

Hunger breeds discontentment. Nobody could live without food. China has the largest population in the world with a shortage in land and water resources. How to ensure the enough food supply nationwide is the essential for sustainable and stable development of people’s livelihood and national economy. Being an important macro-control carrier of market economic system in the new period, state-owned grain purchasing and marketing enterprises play key roles in the economic regulation and controls. On one hand, they have to guarantee the grain market supply and the implement the tasks based on national policies, on the other hand, they also need to develop into the main body of a truly autonomous, self-financing and managing market. However, the weakness of internal control restricted its development, to change the current situation of severe loss, weak competition and inflexible regulations/management, the construction of internal control system is very important, to help the State-owned enterprises develop into competent grain macro-control carrier and meet the requirements for the main body of real autonomous, self-financing market economy system.In this paper, we first reviewed the process of internal control theory in the domestic and foreign development and achievements, and introduced the historical evolution and current situation of State-owned grain purchasing and marketing enterprises, then taking QH grain and oil reserve company as a example, based on its current internal control situations, we analyzed how to construct the internal control system from5aspects:the internal environment, risk assessment, control activities, information and communication and internal monitoring, moreover, we improved the design of business processes of warehousing management, grain rotation and etc.This paper is divided into five chapters. Hirst chapter is the introduction about the background and topic’s significance, research framework, methods and the creativities. Second chapter is summary of the literature and the development of internal control, introducing its revolution and development based on reviews of domestic and international literatures. Third chapter introduced historical evolution and current situation of State-owned grain purchasing and marketing enterprises. It take the QH grain and oil reserve company as the research object, analyzing its current situation of internal control, pointing out the problems of the internal control. Based on the current situation and problems of QH grain and oil reserve company, fifth chapter gave a general design and stated in details about the constructions of its internal control system for State-owned grain purchasing and marketing enterprises, following the rules from the" basic norms of internal control for enterprises". Fifth chapter is the conclusion.