Research On Internal Financial Control System Of MK Corporate

With the development of the social economy and the increasing competition between industries,internal management control has become an important strategy taken by enterprise for reaching competitiveness.Internal financial control,as an important part of internal management control,is of great significance to improve the efficiency of financial management and thus to strengthen the company management level.Effective internal financial control is not only a need for modern management but also for healthy development of a company.MK Company,as a small and medium-sized company in architectural decoration industry,has facing increasing problems in construction and implementation of internal financial control system with the continuous development.So how to perfect the internal financial control system construction and improve enterprise management level has important practical significance for this company.The first section of this paper explains background and significance of internal financial control research and introduces theoretical basis and evolution of internal financial control theory.The second section chooses MK Company as a case study.By means of investigation,interview,observation and other methods,this paper gets lots of first-hand data and information and thus masters present situation on internal financial control in MK Company.On this basis,this paper explores several problems in MK company internal financial control which are summarized in the following aspects: internal control environment needs to be optimized,control strength of many financial activities are not enough,ability of financial risk management is weak,level of financial information management needs to be improved,and function of financial internal audit is absent.This paper also finds that these problems are mainly caused by the organizational structure,system construction,control consciousness,management methods and imperfect reward and punishment mechanism of MK Company.The third section proposes the objectives and principles of internal financial control system construction and designs new internal financial control system of MK Company according to the five elements of COSO internal control.In the optimization of internal financial control environment,this paper puts forward that the company should establish a budget management committee,a financial audit department and also a risk management committee and optimize the rights and liabilities distribution mechanism.In the standardizing and perfecting of internal financial control activities,this paper proposes a more scientific and comprehensive system for budget management,financial control and capital management control.In the risk management,risk identification system,risk assessment system,risk monitoring and early warning system,risk management system are constructed respectively.In the construction of financial information system,this paper introduces ERP financial management information system into MK Company's management.In the formation of the internal financial supervision system,this paper proposes advice mainly from the accounts receivable,suppliers,procurement,auditing and supervision.The fourth section puts forward measurements for the effective implementation of the internal financial control system of MK Company and reduction of human factors in the control activities.These measures are present from four aspects: improving the corporate organization structure,establishing a reasonable performance evaluation mechanism,strengthening the authorizing control.In spite of certain theoretical research and case analysis in the internal financial control,there are still some problems in this paper,such as shortage of characteristics analysis of small and medium-sized companies and lack of quantitative analysis.In the future,I would collect the other companies in the industry,especially quantitative data,to enhance the quantitative analysis of this research.At the same time,I would put more focus on the latest developments in internal financial control theory,as to get more accurate and perfect the research conclusion and thus to provide the reference for further promote the development of internal financial control system theory and practice.