Internal Control On Purchasing Process Of Trading Company Y

At In the beginning of this century,a series of incidents of fraud on information disclosure including Enron and WorldCom occurred in the United States that shocked the world which made more countries and areas especially the United States keep strengthening internal management of enterprises.Therefore,the United States Congress issued the Sarbanes-Oxley Act in the beginning of the 21st century which stated a number of regulations and requirements on internal control mainly for listed enterprises.For China,the Ministry of Finance(MOF)issued the Internal Accounting Control Norms-Basic Norms in the beginning of the 21st century as well requiring enterprises to establish internal control system,perform self-assessment,improve the accuracy of information disclosure and entrust accounting professionals to evaluate and assess the internal control accordingly.Based on the above,we can have an awareness of the importance for the internal control in the process of enterprises development and management,and internal control has been attached more and more attention hereby become a formal management system and almost been legally binding.Procurement is a key link in the process of enterprise operation,especially for trading company,the main procurement cost constitutes the trading company,the cost of purchasing cost of high and low is directly related to corporate profits.So to strengthen the procurement procedures of internal control,is becoming the important means for more and more trade enterprises to reduce operating costs and improve the efficiency of the enterprise.In accordance with the advanced internal control theories both in China and abroad,and Internal Control Norms for Enterprises and its guidance issued by the MOF,the China Securities Regulatory Commission(CSRC),the National Audit Office(NAO),the China Banking Regulatory Commission(CBRC)and the China Insurance Regulatory Commission(CIRC),the article revealed a further discussion on the internal control of purchasing process for the Company Y.On the basis of that,the article illustrates the goals,risks and key control points in relating to the procurement function of modern enterprises.In addition,deficiencies of purchasing process were identified and with detailed further management actions proposed and we reengineered the process at last.This paper begins briefly describing the research background and significance of the article,summarizing the main content and framework of the article,expounding the research method of this paper,the innovation points and deficiencies,then for the Y trading company purchasing process of internal control,this paper introduces the present situation of the basic points out some problems in Y trading company purchasing insufficiency,and analyzed the reasons for these problems.Then the Y trading company purchasing process of internal control is optimized from optimizing the organizational structure to building the procurement system,the target is to establish a set of according with the company material purchasing,meeting the requirements of the regulatory purchasing of internal control system,ensuring the realization of the company's target.The limitations of this paper is to design only one point of the company 's internal control,lessing the contact with the other link of the company's management.Following-up studies will continue to be based on the construction of the internal control,analyzing the effect of the internal control,and improving continuously the other areas of the internal control in the company.