Research On Internal Control Of WEN GUANG Company

In the recent years,the small and medium-sized enterprises have occupied an important position in the traditional manufacturing,catering services and circulation of commodities,and are continuously exploring and innovating in the fields of energy,transportation and education.They are sensitive to the market demand,and active in exploring,innovating,catching the chance to achieve a better goal.Some of these kind of enterprises,which have established a sound foundation through high-speed growing and innovation,are the major roles in economic development.However,during the fast development of economic power,the risk is accumulated,and problems are emerged.The small and medium-sized enterprises usually wind up or vanish after five to ten years,because of the relatively small scale of production and operation,low composing of capital and techniques,and the short lifecycle.Despite of these external aspects,the more profound reason is lied on the lack of reasonable risk control and internal management system dealing with the risk,which restricts the long-term stable development,the improvement of economic benefits and the expanding of the enterprises.Through the analysis and research of the internal environment,risk prevention,control activities,information system and internal supervision,it is found that there is a serious flaw in the construction of internal control of the Wen Guang company,specific issues mainly include: the imperfect governance structure,the lack of personnel recruitment and performance appraisal system,defective risk assessment system,weak awareness of financial management,the lower level of information,the lack of internal audit and internal supervision mechanism and so on.Which seriously restricts the sustainable development of the company.According to the above problems,through in-depth investigation we found the following reasons: awareness of internal control and risk awareness for management are weak;the construction of internal control is lack of comprehensiveness and control;lack of internal audit system;internal control personnel quality needs to be improved;information system construction and feedback mechanism is not perfect.Based on the above reasons to take the following measures.First,optimize the internal control environment,including improving the internal control awareness of the management and staff,improving the corporate governance structure,improving the ihuman resources recruitment and evaluation policies,building an effective risk assessment system.Second,strengthen internal control activities,including optimizing accounting system,strengthening the control of physical assets,the business of decentralization,authorization and approval control system.Third,improve the level of information,including the establishment of information systems,improving information technology,detailed information communication measures.Fourth,improve the internal control supervision system,including strengthening the sense of internal supervision and self testing,improving internal and external supervision mechanism.