MT Group Fixed Assets Of Internal Control Research

Fixed asset is an integral part of enterprise assets, the most important elementof enterprise production and operation, the foundation of enterprise existence and asource of value creation. As the economic globalization and information era deepens,the quality and technological level of fixed assets are key indexes of enterprisecompetitive power. However, due to poor liquidity and long service life, fixed assetsare often ignored by most of managers in production and operation activities, leadingto mismanagement of fixed assets, mismatch between the account and thephysical fixed assets, and poor utilization rate, it is really hard to give play to the realvalue and role of fixed assets. Poor asset management in some enterprises may lead toloss in fixed asset, thus causing great economic loss within an enterprise andseriously affecting the interests of investors and long term enterprise development. Asa large scale enterprise in the three provinces in the northeast of China MT Group hasgrown up into a diversified coal enterprise that focuses on coal production andintegrates the development and utilization of coalbed methane, construction andinstallation, machine manufacturing, fuel and power into one. The management levelof the Group’s fixed assets is directly associated with its market competition andaffects the long term development of the Group.The first section of this paper outlines the theories related to internal control offixed assets, including the relevant theories of internal control of fixed assets in thecoal industry, so as to give the reader a better understanding of internal control offixed assets.In the second part, the paper makes a comprehensive analysis of the internalcontrol situation of the Group’s fixed assets, including internal control pattern andorganizational structure of fixed assets, acquisition and acceptance procedure of fixedassets and current status of system, use and maintenance of fixed assets and currentstatus of system, transfer and allocation adjustment and other processes of fixedassets and current status of system, inspection and scrapping of fixed assets and current status of system.Based on the analysis of the second part, the third part finds out the problemswithin the internal control of the Group’s fixed assets and figures out thecorresponding reasons. Since the most of the group assets are coal mines distributedin the whole province, many cities and counties and other areas, asset managementleaks are more likely to arise. Moreover, it is a state-owned enterprise subject toplanned economy for a long time. Therefore, the complicated organizational structureand personnel makeup causes a lot of problems in the groups fixed asset management,in which the first issue lies in unclear fixed assets resources, overlapping investment,mismatch between the account and the physical fixed assets, miscommunication,absence of ideal internal control environment, low utilization ratio of fixed assets andother problems.At last, in accordance with the author’s study and the research and developmentof internal control theories at home and abroad, the author makes a comprehensiveanalysis of the internal control of the Group’s fixed assets, and redesigns the internalcontrol of the Group’s fixed asset according to the problems in it. Furthermore, itexplains the factors to be considered in the implementation of the internal control ofthe Group’s fixed assets in terms of internal control environment and implementationidea and other aspects;Only by overall, standard and strengthened fixed assets management can wemaintain the sustainable development of the Group.Meanwhile, hopefully theimproving measures put forward in this paper will provide reference for otherenterprises to strengthen internal control of fixed assets, so as to make contributionsto improving internal control within an enterprise.