A Study Of Internal Control Of Private-owned Small And Medium-sized Enterprises

BACKGROUNDPrivately-owned enterprises is an important part of our national economy, private economy accounted for more than60%of GDP,and more than80%of the jobs provided by private enterprises.But present situation of private enterprise development is worrying,especially the privately-owned small and medium-sized enterprises,its average survival duration has only3.7years.Although the government introduced a series of policies to provide a good environment for the development of privately-owned small and medium-sized enterprises,but the survival status of privately-owned small and medium-sized enterprises is still not been effectively improved.The reason of this situation is the lack of internal control.Recent years,internal control receives the wide attention from all over the world,they have done a lot of research on whatever the concept,theoretical framework or development history,but a majority of theory research are based on the large listed company,literature specially designed to explore the internal control of privately-owned small and medium-sized enterprises is relatively lack. In addition,the reintroduction of the internal control policies is more suitable for large companies,in view of the privately-owned small and medium-sized enterprise’s internal control theory research slightly thin.From the perspective of recent policies,people have gradually realized this problem.In2013, the COSO committee released the latest version of Internal Control-Internal Framework, compared with the COSO report of1992,this framework is more suitable for smaller companies.And in2013,on the third plenary session of the eighteenth explicitly our goverment pointed out that let the market play a decisive role in resource allocation,and said it should support the healthy development of the non-public sector of the economy, encourage some privately-owned enterprises to establish modern enterprise management system. In 2014, prime minister Li Keqiang emphasized again that should adhere to the economic development model of market-oriented.Undoubtedly all of these provide a good environment for the development of private enterprises.Therefore, whether from the point of theory or reality, research on the internal control of privately-owned small and medium-sized enterprises has important significance.MAIN CONTENT AND VIEWThe main content of the thesis includes the following several parts:The first chapter is the part of introduction which focuses on the background and significance of research, this article analyses the necessity of internal control research of privately-owned small and medium-sized enterprise, also shows the research ideas, research methods and main research contents, points out the main contribution and deficiency, in this paper.The second chapter is the literature review part, mainly defines the main concept of this article,then introduces the development of internal control in detail from the perspective of both domestic and abroad, and the important works of each stage, as well as makes a comment of relevant literature.Chapter three is the part of theory analysis and status quo, on the base of incomplete contract theory, stakeholder theory and contingency theory, combines the characteristics and the present situation of internal control of privately-owned small and medium-sized enterprises,structures the analysis framework of privately-owned small and medium-sized enterprises’ internal control.The fourth chapter shows the case analysis, this chapter firstly introduces the basic situation of the case company, secondly expounds the thought and process of the questionnaire survey, and finally on the basis of privately-owned small and medium-sized enterprise internal control analysis framework, combines with field investigation and questionnaire survey,deeply analyzes internal control present situation of the case company, and the reason for the company internal control problems.Chapter five is the countermeasures and suggestions, this part mainly combines with problems of internal control in view of the case company,puts forward the corresponding opinions and suggestions, in order to improve company internal control status quo, prolong the life cycle and promote the sustainable development of the company. The sixth chapter is the conclusion, the chapter makes a systematic summing up and summarizing of this article, hopes that through this article can help internal control construction of case company and other privately-owned small and medium-sized enterprises.CONTRIBUTIONSIn this paper, the main contribution lies in the following respects:1.The angle of view is new. Privately-owned small and medium-sized enterprise is an important part of national economy in our country.However,the sustainable development of privately-owned small and medium-sized enterprises is already in trouble, lack of internal control is one of the important factors. Whereas in the past, for researches of internal control had mostly focused on large enterprises and listed companies, the study of privately-owned small and medium-sized enterprises’internal control is relatively small. This article selects a privately-owned small and medium-sized enterprises in Sichuan, through the way of field investigation and questionnaire survey, does an in-depth analysis of internal control situation of this company, and puts forward targeted suggestions and countermeasures based on the problems have been detected.2.Practical significance. The research background of this article is mainly based on the following three policy.First,ministry of finance and the ministry of industry and information technology mulated the "interim procedures for promoting the development of small and medium-sized enterprises through government procurement" based on the "small and medium-sized enterprises promotion law of the People’s Republic of China".Second, the COSO committee issued the latest version of Internal Control-Internal Framework which is more suitable for smaller companies.Third, the third plenary session of the eighteenth made it clear that promote the development of the non-public sector of the economy.Finally,in2014,at the second session of the12th CPPCC national committee, the prime minister of li keqiang offered to adhere to the economy development model of market-oriented.As you can see from these policies,the study of small and medium-sized privately-owned enterprises has a very important practical significance.3.In-depth case analysis. This article adopts the way of case analysis to research the internal control of privately-owned small and medium-sized enterprises, so the case analysis part is the key point of this article.Through the study of the field of case company, the author obtained a large amount of related information,together with the method of questionnaire survey,based on the internal control analysis framework of privately-owned small and medium-sized enterprise, made a comprehensive analysis of the case company’s internal control status quo and in-depth analysis of the case company internal control problems and the causes,then put forward the corresponding suggestions and countermeasures.