The Research On Business Process Control In Sanmina Corporation

In recent years, internal control rises as an important issue, with more occurrences of frauds and stricter regulations on listed companies. Even internal control has become an essential part of modern management theories, the research of it originated from audit area, in an outside perspective. What's more, the research focuses on internal control related with financial information. While it is difficult to measure and further discuss the control which does not relate with financial data.This paper has three parts. The first part is a summary of internal control-related researches, in a retrospect of the origin, development and future of internal control.Three phases are classified: the first is internal monitoring, starting from the industry revolution in 19 th century to 1940s; the second is internal accounting control and management control from 1940 s to 1980s; the third is internal control structure and integrate frame from 1980 s till now. The second part analyzes the control systems,especially about the control environment and corporate culture of SANMINA under the integrate COSO control framework, in an internal management perspective. Then,a careful analysis of internal control related with financial reporting, such as sales and collection, purchase and payment is provided. Another discuss of non-financial data related control is followed. Based on these analyses, the problems regarding with integrate control and business process control are listed out. The third part tries to raise a practical solution, considering about the previous analysis of COSO framework and business processes. The solution focuses on control environment,factors influencing control conscious, and the match of risk assessment, control objectives and subsequent control activities. The key point is internal control should be integrated into the operation of a company, but not be split out.Through the analysis of SANMINA, this thesis tries to come up with a thought: a switch of outside monitor perspective to internal management insight and a change from passive control measures to active interests should be considered in the internal control construction.