The Study On The Effectiveness Of Y Company’s Internal Control Activities

The effectiveness of internal control activities for enterprise management plays a vitalrole, which is highly concerned by the scholars in today’s academics. This paper takes theeffectiveness of the Y company’s internal control activities as a study case, how to evaluate itis the most urgent problem for Y company. Therefore, this paper stands on the researcher’sperspective, by constructing the evaluation system could improve the effectiveness of internalcontrol activities, which has a certain theoretical and practical significance.First of all, this paper proposes the research background and significance and reviews theassociated literatures, then presents the contents and methods. Second, describing the currentsituations of the internal control activities in Y Company. Third, evaluating the effectivenessof the internal control activities by using the comprehensive evaluation method. Based on"Enterprise Internal Control apply guidelines" and combing the Y company’s operatingcharacteristics to confirm the evaluation of Y company’s internal control activities, thenconfirm the evaluation of membership grade by questionnaire survey and determine theweights of evaluation by AHP, so that to get the result. Then analyzes the evaluation result.Finally, finding the problems of the internal control activities and analyzing their causes, incase to propose the improving recommendations.The result of this study indicates although the effectiveness of internal control activitiesof Y Company is valid, it still has some problems, including sales executive is not in place,the non-compliance operations of the outsourcing process, the non-standardized projectmanagement and the poor asset management efficiency. For these four problems, this studyproposes the corresponding improvement measures, including establishing the salesoperations oversight mechanisms, strengthening the monitoring efforts of outsourcing process,clearing job responsibilities of the projects and updating the fixed asset managementtechnique. These measures has certain practical significance for Y Company. Wish this studycould provide a reference for other companies.