The Research On Optimizing Internal Control Of Fund Management In M Electric Company

The funding cycle runs through the whole process of business activities andrational design and implementation of capital control system is the basic conditionfor normal operation of enterprises and the basis for enterprise survival ordevelopment. In order to strengthen and standardize the internal control of enterprise,68companies listed domestic and overseas and216pilot companies implementedenterprise internal control standard system in2011. According to the announcementmade by the Ministry of Finance and the China Securities Regulatory Commission,the board of state-owned listing corporations including M Electric Companyintroduced the system in2012. As a typical enterprise in mechanical manufacturingindustry, the monetary fund internal control of M Company is weak because of highcost and great risk in research and procurement and some defects in the aspect ofdesign and implementation. These urgent problems need to be solved at once.Based on the existing researches in cash internal control, this paper takes MCompany as the research subject and analyzes the current situation of M Companyand the significant problems in overall level and operational level. According to thefive elements of internal control, the overall level problems can be divided into fivetypes: weak control environment, lack of risk awareness, incomplete controlactivities design and execution, invalid communication, ineffective internalsupervision. The operational level has four problems: the emergency funds controlnever exist; it is a lack of rules and regulations to standardize the existing controls;the implementation of existing controls is not complete; there is no adequateevidence in the implementation of existing controls.This article makes references to the Basic Norms of Internal Control,Application Guidelines for Enterprise Internal Control No. sixth Capital andthe explanations of the basic norms of internal control made by the Ministry ofFinance, combines the situation of M Company and puts forward severaloptimization measures through analyzing the problems in overall level andoperational level.