Research About The Internal Control System Of J Building Materials Company

With the development of market economy, private enterprises show a sustained and rapid development. In2012it is as60%of China’s GDP contribution. By2014private companies in the top500enterprises of China spread over40%. Private enterprises have become an important part of China’s economy. However, private enterprise internal management exists some problems, such as internal control awareness insufficient, internal control environment not perfect, strategy management of blindness, risk assessment not accurate, control activities in the budget management form is greater than content, financial management system weak, information communication not smooth, lack specification of internal audit mechanism and so on. These problems hinder private enterprises’long-term development, to make private enterprises in a opportunities and risk survival state.How to establish and perfect internal control systems is the problem private enterprise need solve. Therefore, paper is based on internal control theory research, followed enterprise internal control specification and the three items supporting guidelines of requirements, describing the aspects of theory, such as internal control system concept, principles and elements. Use case research method with j building materials company (SSE listed private enterprise) for instance, analysis the situation and systematic problem of j building materials company’s internal control. Then proposed perfect internal control ideas, focus on internal control environment, carried out risk assessment, refinement control activities, strengthened information passed with communication, internal oversight. In addition, focus on budgetary control in the part of controlling activities. To improve j building materials company’s budget control system, the paper focus on budget organization, budget design, budget enforcement, budget adjustment, budget evaluation and so on. It is in order to optimize the j building materials companies’internal control purposes.This paper argues that private enterprises’long-term development must rely on a good internal control system. By optimizing the j building materials company internal control system design, proposed the construction of thoughts and methods of perfecting internal control, pointing out internal control issues and put forward measures to solve these problems for optimizing j building materials companies’internal control provides a scientific idea. With j materials research on internal control of the company in order to achieve the objective to improve the optimization of internal control management and improve the overall level of internal control, thereby reducing management risk. In addition, I hope it draw some inspiration and reference to establish and perfect internal control of Chinese private enterprises.