Case Study Of A Automotive Company’s Sales Internal Control

Financial frauds of Enron、Stone companies in2001, as well as the bankruptcy of Lehman Brothers in2008, were mainly caused by the design flaws of their internal control process. COSO framework、The Basic Standard for Enterprise Internal Control and The Internal Control Guidelines issued by China government in2008and2010separately, which provided a strong support for the reinforcement of corporate governance, the improvement of internal control and the supervision of the company. EsTablelishing a complement and an effective internal control system, not only meeting the compliance requirements for the listed companies, but also helping enterprises to integrate management operations process, clarify each person’s responsibilities and promote companies to achieve their goals.Sales is the final cycle of the enterprise to achieve the operating results, it has important status in the company’s whole operating process. If the companies only focus on the improvement of sales performance, pay no attention to the internal control process, it may lead the companies to the some risk just like GSKCI, whose operational purpose was seeking sales increase, ignoring related laws, regulations, not meet the compliance requirement, eventually, GSKCI was fined to pay the penalty of CNY3billion, related personnel was sentenced prison. How to make companies not only improve their sales performance, but also compliance with related laws and regulations, set up a sound internal control system for sales cycle is the key concern for our management team. This essay was start from the theory of internal control, according to5elements of COSO model, analysis the current internal control status of A automotive company’s sales cycle, and point out the exists of the problems. According to the5elements of COSO model and the regulation of The Internal Control Guidelines, I proposed how to optimise company’s control environment, esTablelish internal control assessment system, perfect internal control activities, and strengthen information communication, perfect monitor system. From the aspect of improvement of policy、 reengineering、human resource management, design a new model of A automotive company’s internal control system for sales cycle which can help the company to achieve its goal.