Internal Control Of SI Company In Sales And Receivable Link

In the recent years, we have paid more and more attention to the role of Internal control regarding to improving company transparency, making company operation regulatory and effectively and protecting investors' interests and so on. Sales places a very important role in a company's entire operation. To improve internal control of sales and receivables, prevent errors and fraud in the process, standardize the behavior and avoid bad debt losses has become an important issue which should be taken seriously and resolved carefully for each company. Sales business includes two closely related aspects: sales and cash collecting. If a company wants to survive, develop and grow, it needs to give more efforts on sales continually, expand sales channels, expand market share to a considerable extent. At the same time, once a company's big share of sales cannot be paid fully or in time, the company will definitely fall in deep financial trouble. Therefore, sales and payment receivable can be described as the core part of a company's internal control. It is worthy to make deep analysis.The thesis made a study on SI Company where the author had worked for several years. By Trend analysis and Financial index method, the author found several problems existed in SI's sales and receivable, such as sales drops of key customer, long cycle of account receivable, big share of bad debt, poor performance on short-term debt paying ability. Then based on The instruction of Enterprise internal control, the thesis tried to find internal control problems of sales department, project department, customer service department, spare parts department, finance control and accounting department. It was found that the authorized examination and approval mechanism is not perfect, sales people assigning were not adapted to updated market situation, employee were not qualified with technical knowledge, customer credit management were not good, improper payment condition were applied, receivable collection faced bad situation, bank draft and important files' documentation were in a mass. Explained reasons were followed after each defect. In the last, from COSO five factors' theory, the thesis firstly provided suggestions against each department, and then made integration advices to common internal control problems existed among various departments. That is improving control environment, enhancing communication, paying attention to risk evaluation, monitoring and strengthening the performance appraisal.