The Discussion On Internal Control In HDL Corporation

Since China’s reform and opening up,especially since entering new century,our national economy is developing at an alarming rate,caused the wide attention of the world,it is worth mentioning that the development of the tertiary industry is remarkable and its proportion in national economy is becoming bigger and bigger.As one of the main industry in the tertiary industry,catering industry played an important role in promoting economic growth,and made a positive contribution on expanding domestic demand,placement employment,prosperous market and improve the quality of people’s living standard and so on.But in recent years,many catering enterprises is facing the development bottleneck,some of them even have closed down,turning out to be the legendary "short-lived" enterprise.Investigate its reason,in addition to operating environment,the enterprise growth cycle and the particularity and complexity of the industry itself,in addition,it also has a close relationship with the weak internal control system in catering enterprises.Practice has proved that the sound level of internal control system is related to the development an enterprise,to develop in the fierce competition environment,the enterprises must first have a perfect internal control system,as well as ensure that internal control is effectively performed.Strengthening internal control as an important management method of modern enterprises,has been increasingly brought to the attention of the enterprise management.This paper followed the principle of combining theory with practice,adopted the method of combining normative analysis and case analysis,discussed the catering enterprises internal control problem,along the thought of "ask questions-analysis problem-problem solving" train to have a study.Selecting HDL company as case study,on the basis of the research purpose and meaning,this paper expounds the catering enterprises internal control research status and theoretical basis,and then into the case analysis of HDL company.With HDL company as a case,this paper first of all,introduced the general situation of the company,including company’s basic situation,organization structure and operation characteristics,and the status quo of HDL company internal control;Secondly,respectively from the internal control environment,risk management,control activities,information and communication,the five elements of internal supervision,analyzed HDL company in the internal control problems;Again,it analyzed the reasons of the HDL company internal control problems,respectively is the corporate governance structure is not standard(analyzed from two aspects of the family business model and property right structure integration),company management scope is narrow,the lack of corresponding risk assessment,executive force is insufficient,the lack of effective internal supervision system.Finally,combined with the company’s internal control problems and the reasons,putting forward countermeasures to improve the HDL company internal control present situation.The first is to optimize the company’s internal control environment,it is recommended to optimize the corporate culture,the establishment of modern magic governance institutions and implement sound human resources policy.The second is to establish a scientific and effective risk management mechanism,the advice is to approve from establishing quality inspection recommendations from risk prevention mechanism and actively responding to the difficulties faced in the risk management.The third is to strengthen the enforcement of control activities,it can be approved from purchasing,sales and collections,controlling the cost and quality when when in the procurement,strengthening "discount authorized management" when in the sales cycle,strengthening the control of accounts receivable.The fourth is to improve the efficiency of information and communication,it can be approved from increasing investment in information systems and broadening communication channels of the company and the employees.The fifth is to strengthen the supervision and internal control mechanisms,we recommend to improve their internal control system,strengthen internal oversight of the independence and authority,improve the internal supervision and evaluation mechanism.This paper take the internal control of catering enterprises as perspective,will affect the competitiveness of enterprises in recent years,the construction of cultural factors scholar attention catering business,organizational structure,quality service,brand building and other systematic.Selecting the HDL company as a case study,I expect to contribute a little to the academic field when researching catering enterprises’ internal controls,at the same time,hoping to provide some reference for the audit practice.