Research On The Inventory Internal Control Of M Company From The Perspective Of Management Procedures

With the rapid development of the economy,an enterprise pays more and more attention to standardizing its own internal control.Particularly in recent years,the economy is getting graver and graver and serious issues like breaching regulations due to improper internal control of the enterprise are constantly emerging,so establishing and perfecting the internal control of an enterprise as well as ensuring the sound development of the enterprise has currently become a hot topic for public discussion and an important task that the enterprise is trying to accomplish.China is a big manufacturing country,and inventory is regarded as valuable current assets of the enterprise,whose management,whether effective or not,will have a direct impact on the operation and economic benefits of the enterprise.Therefore,solidifying the inventory management of the enterprise turns out to be a key link in the internal control process of the enterprise.Establishing and executing a complete inventory internal control system are capable of protecting effectively the safety of the inventory assets,lower the occupational level of average capital on the premises of ensuring production operational requirements,raise the use rate of inventory and flow rate and increase the economic benefits of the enterprise.From the perspective of inventory management flow process,the paper deals with study on the inventory internal control of the manufacturing enterprise by summing up in the first place the research fruits achieved by scholars at home and abroad for inventory internal control and adopting descriptive research methods to straighten out briefly the related theories involved with the inventory,which provides a theoretical basis for the study as follows.Secondly,focused on a manufacturing company M,by way of case analysis,a field research and analysis has been conducted of its internal regulation of inventory and existing problems.A built-in regulation of inventory has been designed for company M according to the five elements of internal control framework.Based on circulation process of the inventory in the enterprise management,enterprise inventory controls have been elaborated designed scientifically from the perspective of the circulation process.A norm of operations has been established of the purchasing,checking in,producing management,checking out,costing,daily caring,scrapping and final inventory of the enterprise’s inventories through flow charts and risk control documents.Risk points involved in the business process have been identified and corresponding measures of control have been raised and risk control documents have been made.Meanwhile,it has been suggested that the transfer and authorized approval of the relevant documents be embedded in ERP system,thus the standardization and routinization of the internal inventory management will be realized through the scientific MIS.Finally,a rational proposal has been raised for promotion of the effective implementation of inventory internal control system.