Study On Internal Control Of ZB Company

Internal control is implemented by the board of directors,the board of supervisors,the manager and other employees.It aims to enhance the operational efficiency of the company,ensure the reliability of financial statements,and enhance the compliance of relevant laws and regulations.In order to achieve the effectiveness of internal control,it is necessary to support the five elements of "internal environment,risk assessment,control activities,information and communication and supervision".The internal control of enterprises is the focus area of enterprise management theory and practice.It is very important to establish and improve the internal control system for the sustainable and healthy development of industry enterprises.ZB gold and silver jewelry company limited is major in sales of gold and silver jewellery and handicrafts,corporate marketing planning,market research,conferences and exhibitions.However,because of the fierce competition in the regional market,the increase of external uncertainty and the lack of internal control system,the company has many proble,ms in internal control management and risk management,and it is urgent to establish an internal control system suitable for the development of the company.The interview results of internal control show that there are some problems in current internal control practice of ZB jewelry company,such as unreasonable organization structure,imperfect risk assessment mechanism,lack of internal control system,lag of management information system construction and lack of effective supervision mechanism.In response to the above problems,it is recommended to further optimize the internal environment of the company,improve the risk assessment system,strengthen the internal information transmission and communication,and strengthen the internal audit and supervision.Based on the results of internal risk identification,assessment and evaluation,the overall risk and most of the first-level risk factors belong to a higher risk level and should be controlled.Based on the value chain perspective and using the method of literature analysis and interview to identify possible 10 second-level risk factors and 62 third-level risk factors in operation of ZB company,and determine the level of risk factors by fuzzy analytic hierarchy process and triangular fuzzy number method.The results show that the overall risk,organizational structure risk,human resource management risk,financial management risk,brand management risk,marketing risk and customer service risk of ZB company are at a high risk level,which is the risk control point that the company needs to focus on.According to the PC matrix selected by the risk response method,the internal risk response methods of ZB jewelry company is summed up into four types:risk aversion,risk transfer,risk reduction and risk acceptance.According to the risk management priority and risk level,the methods and strategies should be adopted for the 62 risk factors.The main innovation of this paper is to summarize the main defects of the five elements of internal control of ZB gold and silver jewelry company limited,identify the internal control risk factors of ZB company,and determine the risk level of the different grades of risk factors,put forward the effective measures to optimize the internal control system of ZB company,fill the gap in internal control research of the Chinese jewelry enterprises,and further expanded the research on internal control theory.