The Optimization Research On Internal Control System For Sales And Receivables Cycle Of S Seeds Company

In the past few years, the whole seeds industry has suffered a nationwide highstock pressure which resulted from the sharp rise in the amount of seed yield. As thereturn rate of the seeds industry increasing gradually, the profit-seeking investment ispoured into the industry to earn profit, resulting in the consequences of viciouscompetitions by industry participants simply raising the production capacity. Thecontinuing rising of the stock of the seeds listed companies has made the businesssituation become much more severe. To ensure the enterprise’s growth, stability, andsustainability, it is particularly urgent and important to establish and refine sales andreceivables internal control and regard its management as a core part of the businessmanagement. It is not only the primary means by which managers strengthen salesmanagement, control sales activities and improve the loan recovery efficiency, butalso the important content which to enhance the effectiveness of internal governance,to reduce the risk of sales and back section, and to maintain the competitiveness of theindustry.As a leader of the industry, S Seeds Company is very competitive in research anddevelopment of the new seeds varieties. However, for the construction of sales andreceivables cycle internal control system, there still exist many problems, such as theunawareness of the management’s risk control, the lack of risk assessment procedures,failure to establish a clear information feedback mechanism and so on. Therefore, it isessential to improve the sales and receivables cycle internal control system tomaintain a competitive advantage in its industry. Through several investigations to Scompany and the home and abroad researching of internal control theory, the thesisfirstly elaborate the operating status of the company’s sales and receivables cycleinternal control system. And then propose the problems which happened in the salesand receivables cycle process. At the same time, I analyze the existing problemsaccording to the actual situation and referencing to the internal control norm. Finally,I give my advice for the perspective of five elements in regard to optimize thecompany’s sales and receivables cycle internal control system, in attempt to helpingother enterprises in the construction of the internal control system.