Research On Risk Control Of Lingfeng Pharmaceutical's Procurement And Payables Cycle

Since the beginning of the 21 st century, there have been many cases of financial fraud in the world. Such an environment to many enterprises in China have sounded the alarm, on the enterprise's internal control is able to effectively implement, all affect the development of the enterprise itself.With the development of economy, the way of credit purchase is more and more used in the transaction. This method brings more orders to the enterprise, but also brings the corresponding risks to the enterprise.So the enterprises in the procurement and payables part of the risk control is necessary.Based on the “basic norms of internal control” and the “Guidelines for enterprise internal control” promulgated in 2008 and 2010, since most of the current Business Models in Chins tap capital markets, we aim for the enterprise's long-term development other than pursuit for the short-term profits. Taking Guangxi Ling Feng Pharmaceutical Co., Ltd.(GLP) as an example, we did documentary analysis, inquisition, case study, etc. Focused on GLP's purchasing and payables cyclic process, and risk Management, then we explained in detail about its cyclic flow and its risk Management from risk identification, risk assessment, risk prevention and other methods. This not only plays an important role in GLP's long term development, but also has the certain impetus role to the development of Chinese economy.This paper argues that although Lingfeng Pharmaceutical currently has a complete cycle of purchasing and payables, there are still many risks. And some of these risks have occurred, the risks have occurred can think of ways to deal with, some hidden risks, although not yet, but to prevent it as soon as possible.