The Analysis On Internal Control Status Of X Company

In the highly competitive market environment, enterprises are confronted with various and complex risks. In order to guard against the risk, have an invincible position in the fierce market competition, the risk consciousness of enterprises is strengthened day by day. Also because of the risks, we pay more and more attention to the enterprise internal control. As an integral part of modern enterprise management, the enterprise internal controls play an important role in business success. However, SMEs are often unconscious to the construction of the internal control or copy the model of large foreign companies directly. Therefore, establish and perfect internal controls provide a safe system guard to the SMEs, and it improves the enterprise performance. In this paper. the author analyzes the internal control activities in the business through the case study method, it combines practices and internal control theory, providing a reference for promoting the small and medium enterprises to strengthen the internal control, standardizing corporate governance structure, reducing the risk of business operations, and then improving the economic efficiency of enterprises.This article starts from the internal control concept, introducing the theory of the internal control knowledge systematically; and take Chengdu X company as an example, introduces the current situation of internal control system, analyzes X in the financial management, procurement and payment process, the budget process, the sales payment process and other aspects of the existing problems; at the same time,analyzes the reason why the current internal control is not perfect, the establishment and operation of internal control are dependent on many factors, this article mainly discusses them from five aspects:1. the enterprise organizational structure and internal control environment,2, internal risk evaluation system,3. information communication,4. internal control system and the integrity,5. the internal audit and supervision. The five aspects of the internal control of the enterprise produced are more or less important mutual and diversionary action; therefore, in the last part, this paper presented a better improvement of the internal control status measures, and proposed the internal control design ideas, design principles and specific steps:1. establish and improve the organizational structure, refined job responsibilities and work flow,2. practice performance appraisal mechanism,3. strengthen budget management,4. strengthen the internal audit,5. stress on the core control point; and design procedure on the basis of authorized approval system and other system of internal control.In China’s vigorous development of the small and medium enterprises today, the lack of internal control has seriously hampered the development of the enterprises, and caused risks to business operations. Therefore, establishing and perfecting internal control system for SMEs is imperative, the article from the general to the specific, from standard study to empirical analysis, through deep and systematic analysis to X’s internal control status, it aims at the theory of the internal control solution of the problems X faced, I believe this has a certain reference value for X company to improve internal control, resist risk, improve business efficiency.