Study On The Problems And Countermeasures Of Internal Control For A Auto Repair Factory

Small and medium-sized enterprises play an inevitable role in pushing economicdevelopment, enriching the management structure, making the market active, absorbing thesurplus labor and relieve the employment pressure as a important force in the market. To acertain extent, the small and medium-sized enterprises can be said as the power of theeconomic development. However, the SMEs has a lot of problems such as seting upsuccessfully but growing up slowly, the pour ability of resisting risks and the short overall life.One of the reasons is the impact of the competition in its industry and poor skill ofmanaging,the other is because of the weak internal control system. The SMEs often has theproblems such as thinking highly of the result of operating with ignoring the managementwork, the unreasonable organization structure, the failure of accounting control system, thelack of effective risk assessment and supervision system which are regarded as the factorsmaking their competitiveness weak Therefore, It is important to establish a effective internalcontrol system for SMEs.This paper is based on the theory of the concept, target and factors of Internal controlsystem with studying the domestic performances in the way of standard research and casestudy.It chooses A auto repair factory to research with considering our auto repair industry’sdevelopment situation. The paper analyses the problems of the factors of Internal controlsystem in A auto repair factory, then explains the reasons which caused the problems. It putsforward the countermeasures which can improve the A auto repair factory’s Internal controlsystem in control environment, business cycle control, internal accounting control, riskprevention and supervision aspect with considering the existing problems above to make itsability of operating skill and risk prevention which is useful to reach the strategic goal. Theapplication of Internal control theory to a typical SME can make the practice value moreoutstanding. The paper not only put forward a practice countermeasures of improving theInternal control system for A auto repair factory’s development current situation and operationcharacteristics, but also play a role in studying to build Internal control system for small-sizedauto repair factory. It is also useful to enrich our SMEs’ Internal control research system tosome extent.