Research On Internal Control Of Lantian Company

In recent years, with the improving of people's living standards, the abundance in social substance and development of technology drive the rapid development of the automotive sales industry. With years of development, as an inland central-section province, Hunan has the fastest growing family car consumer market in central regions, especially Changsha, Zhuzhou and Xiangtan, is to develop from the second and third tier automobile market to the first-tier automobile market. While the development of the automotive sales industry, the background of economic globalization brings tremendous competitive pressure to those automotive sales companies. As an important part of modern enterprise internal management, internal control plays a vital role in improving the internal management of automotive sales enterprise, reducing an enterprise operating risks and enhancing the market competitiveness of enterprise.Lantian company is one of the leading automobile sales enterprises in Hunan province, and it mainly engaged in car sales, maintenance and spare parts sales. By 2015, Lantian company's car sales rose to 4.5 million. The sales of whole cars accounted for 7% of the passenger car market share in Hunan province and ranked 2nd in the field of automobile circulation in Hunan province. This paper taking Lantian company as an example, using theoretical analysis, field investigation and case analysis, studied a variety of issues in the five elements of internal control and offered suggestions and opinions in dealing with these issues. Firstly, it introduced the research background, research meaning, referenced literature and research way of thinking. Secondly, it discussed the concepts of five elements of internal control and their relationships, and described the general situation of automobile sales enterprise and related theoretical basis of the five elements of internal control. Then it briefly introduced the Lantian company and described the status of their internal control. Furthermore, it chose Lantian company's control environment, risk assessment, control activities, information communication and internal supervision as starting points and discussed the main existing internal control problems of Lantian company. Finally, combining the company's current situation, the paper has proposed corresponding solutions and measures for Lantian company.Based on the integration of five elements of internal control, this paper combined a practical case to analyze the problem of Lantian company's internal control and proposed improvement suggestions to enhance their internal control. Moreover, it has the model significance for automobile sales enterprise to strengthen their internal control system, raise the management level and enhance their comprehensive strength.