The Research On The Construction Of HL Company Internal Control System

Experience of developed countries shows that in the modern process of industrialization,small businesses have a corresponding relationship with large enterprises, their existence anddevelopment have a certain rationality. Small businesses are not only an important factoraffecting the process of industrialization in the developed world, but also are one of theimportant pillars of the industrialization process. Process of economic development in eachcountry plays an essential role in the number of small businesses. After decades ofdevelopment, small businesses have occupied an important position in the national economy,which have become China’s economic growth, employment and labor absorption key force inmaintaining social stability. However, with the gradual differentiation of small-scaleenterprises, only a few grow into medium-sized and large-sized enterprises, others are still alarge number of small businesses. Due to institutional reasons, ideas and other aspects of smallbusinesses are still some inherent flaws. For example, entrepreneurial management is noteffective, corporate governance model is not perfect, moreover, the negative of internalmanagement systems and so on. Therefore, the establishment and continuing to improve theinternal control system of small businesses has a significant effect for improving businessperformance, promoting small business development, and even achieving the strategicobjectives of the national economy.In this thesis, based on the Chinese HL Company which is a small family businessmanagement model for their operating management, using theoretical analysis, research,analysis, case study methods, along research status, diagnosing problems, cause analysis andsolving problems, a main line of research, it tries to build a suitable HL Company’s internalcontrol system. Based on analyzing the background and significance of the topic, this thesisconfirms theoretical value and practical value of this research. It summarizes in the review sofar the basic research on internal foreign control, the precise scope and characteristics of smallbusinesses, the meaning of the internal control, internal control theory of the five elements, alt,which is the theoretical basis to the analysis of the concrete enterprise practice. The thesisdescribes the industry background of the HL Company and analyzes the current situation ofinternal control environment and control activities, finds the problems and loopholes about theorganizational structure, human resource, corporate culture, materials supply, warehouse management, products production, sales of goods and the financial control. Analyzing thereasons, the thesis proposes and builds a set of relatively complete system of internal controlto the HL Company. To solve the HL Company current problems in the production andbusiness links, at the same time, and to guarantee the production and operation management incompany efficient and orderly, the company achieves to develop better.