Research On The Internal Control Of Tonghua Chemical Limited By Share Ltd

Along with the development of small and medium-sized enterprises to continuously, the existence of its own problems also in constantly emerging, such as the enterprise production and management of uncertainty, did not attract the welfare of high-tech talent, financial management of randomness, mean exists in a shorter period of time, causing the main reason is the small and medium-sized enterprise are generally not a set of complete with its own production and operation of the internal control system. In many small and medium business failure examples we discover not hard, internal control degree of the establishment and development of the system is far less than the company scale expand degree of development has in some degree limits the development of small and medium-sized enterprises. Therefore, in the current development, private enterprises in China want to be healthy, sustainable development, we must find a set of internal control system in line with their own enterprise development rules. Through of Tonghua Chemical Co., Ltd. of internal control research, not only for can the enterprise to establish and perfect the more systematic and effective internal control system to provide a reference, but also for future scholars control in the enterprise internal related theory research field to provide realistic reference case.This paper first describes the internal control objectives, the basic principles and the theoretical framework of the elements, for the follow-up of the Tonghua chemical Limited by Share Ltd to study the internal control of the theoretical basis for the study. Secondly, the combination of Tonghua Chemical Co., Ltd., summarizes the present situation of internal control of the company from the five elements of the control environment, risk assessment, control activities, information systems, internal oversight COSO framework. Again, from the status quo of found the company’s internal control of the main existing problems and defects, and analysis of its causes, mainly has: has not yet formed a good internal control environment, the concept of risk is weak, control activities needs to be improved, information and communication is not smooth, supervision is not in place. Finally, on the basis of the foregoing analysis proposed Tonghua Chemical Co., Ltd. optimization of internal control measures and suggestions, including: create internal control environment, strengthen risk assessment and optimization of control activities, improve internal information and communication channels, strengthen the internal control activities of supervision. Hope that through this study, Tonghua Chemical Co., Ltd. established a series of internal control system, to form an effective internal control system and of the target company, principles and decision-making methods and so on to formulate relevant rules, the powers and responsibilities of different constraints between stakeholders, to protect the enterprise’s operating activities running smoothly, improve enterprise’s core competitive advantage, to prevent the risk of enterprise production and management, optimize the management structure of the enterprise, realize the maximization of enterprise value.