Research On Internal Control Optimization Of WJ Printing Company

Recent years have witnessed impressive development of China's economy.Particularly following China's adoption of the reform and opening-up policy,China's market-oriented economy has become increasingly vigorous.The government's macroscopic policy support has led to springing up of all kinds of enterprises.Many of them have been evolved into multinational corporations.However,China's market is still dominated by the small-scale enterprises.They play a big role in development of national economy.The large-scale enterprises with a complete structure and complex environment have been widely investigated by many scholars.Nevertheless,the small-scale ones are often ignored by the academic circles.In fact,improvement of small enterprises' resource allocation efficiency can also promote development of national economy.Internal control is an effective means to improve enterprises resource allocation efficiency.Internal control management is the linchpin to improvement of small enterprises' management level,which can make enterprises more prepared to cope with the fierce competing environment with more composure.The research focus of this paper is internal control of small-scale enterprises.WJ,a printing enterprise and a representative of small-scale enterprises,is taken as a case study.Its organizational chart and internal control problems are described to provide the research background for improvement and optimization of internal control.WJ has operated in the local market for decades,and its business has been expanding along with the macroscopic economic development.However,as the corporate structure keeps on expanding,the small-scale enterprise has been faced with a typical problem,that is,the low operation efficiency of family-type management has impeded corporate development.In order to cope with the problem existing in WJ's operation and management and also to resolve problems confronting small-scale enterprises' internal control,this paper conducts a questionnaire,in which 23 questions related to internal control risk management are designed on the basis of COSO2007 Risk Management Framework and five elements within the risk management framework.The author carries out a field survey of the daily operation status of WJ and communicates with its management.To sum up,this paper consists of five chapters.Chapter 1 introduces the research background and significance,literature review and main research work of this paper at an attempt to provide an overview of the whole research.Chapter 2 expounds on internal control theories and internal risk management.Based on a brief introduction of WJ,its internal control survey and existing problems,Chapter 3 analyzes the internal control status of WJ company.In Chapter 4,how to optimize WJ's internal control concerning the existing problems is examined,which is a core part of this chapter.The internal control theories are applied to the practical situations of WJ with effective optimization plan proposed.Chapter 5 is a summary of the research findings of this paper,looks into the future of the research field and points out limitations of this research.In analyzing the internal control of WJ,this paper finds out via literature review and field survey that most scholars emphasize importance of the internal control risk management.However,there are few feasible plans concerning optimization of small enterprises' internal control.In practices,small enterprises do not have a strong awareness of internal control.Their ignorance of internal control usually results in waste of many corporate resources.Hence,more attention should be paid to small-scale enterprises' internal control.Meanwhile,an internal control system which is adjusted to local conditions of small enterprises should be put in place to help small enterprises improve their management efficiency.