Research On Internal Control Design Of Raw Material Purchase And Payment

The importance of internal control for enterprises is self-evident. On the one hand, it monitors the daily production and business activities of the enterprise, to ensure that all the activities of the enterprise are in the master plan. On the other hand, it is closely linked with the generation of financial report, perfect internal control provides a reasonable guarantee for the reliability of financial reporting. Therefore, the internal control design of the listing Corporation is not the pursuit of its legitimacy, but also in order to ensure the normal production and operation of the company’s efficiency and effectiveness. However, with the continuous development of economy and technology, the scale of enterprises is becoming more and more big, the organization structure is more and more complex, which may lead to the internal control of the enterprise has the gap can be drilled, and increased the operating risk of the enterprise.ABC company is a private enterprise, mainly engaged in the production and sale of fine chemical products, and its products are mainly sold to the major manufacturers of paint industry, the company’s raw materials are mainly derived from the petrochemical system. Purchase and payment cycle as an important internal control of the enterprise to ensure the timely supply of raw materials and the cost advantage of the relatively cheap. In this paper, we analyze and think about the purchase and payment of ABC shares, and optimize the internal control of ABC company’s purchasing and payment cycle, which provides a reference for the internal control of chemical industry enterprises.