Study On Internal Control In Procurement And Payment Circulation Of Z Company

At present,with the rapid pace of economic developing, competitive situation between enterprises is grim, the Company’s internal controls suffered unprecedented challenges. Due to inadequate internal controls numerous cases of the brink of bankruptcy or corporate demise appeared, Barings Bank, Enron, WorldCom still vivid in our mind. Therefore, people clearly recognize the need to strengthen corporate governance, risk management and internal control, to form a powerful system to identify, assess and control risks.By research people found that the incidence of fraud cases is largely due to inadequate attention to internal controls, or for the control of risk is toolax. But at this stage, in addition to a higher risk of banks and other financial sector, most of the companies do not pay attention to risk assessment and internal controls.The business environment is constantly changing, companies need to have a clear mind to face their possible risks, to assess these risks quantity or qualitaty, to take appropriate control activities by re-using assessment results,to maximize internal control framework effectSMEs are an important part of our national economy,which plays an importantrole in promoting.economic development and social stability.Having a short history,smaller outputs, fewer people, lower capital and technology constitute, weaker capital, and often several roles within the enterprise staff, lacking of internal controls onmanagement concepts and methods. Therefore, the internal control have been management blind spot.in many SMEs nowadays.In this paper, by using the internal control theory and previous research, collecting Z Corporation procurement and payment of internal control, and the use of research, theoretical methods such as regression analysis of the company’s procurement andpayment cycle deficiencies in internal control mechanisms and risk exists, an improved Z Corporation procurement and payment cycle of internal control and the specificcontent of the general idea. Z to further improve the company’s internal control system, to maintain and improve the company’s competitive advantage.