Research On Internal Control Of Bank Channel Sale Business In Precious Metal Sales Enterprises

One of the hot issues in the modern accounting research field is the internal control.The research finds that the internal control situation will impact on earnings quality,financial efficiency,enterprise value and operating situation of a company.Identifying problems of internal control and providing solutions can reduce business risk,improve the profitability of company,and support enterprises maximize profit.So,the discovery of internal control problems and improvement measures provision is the base of enterprise's existence,and the guarantee of the corporation development.The internal control issues of various industries have something in common,but every industry has its own characteristics and different elements in potential problems and key points of internal control.The drop of international gold prices,coupled with a downturn in the international economy,a sluggish recovery,and a slowdown in domestic economic growth,has seriously affected on the precious metal sales industry.The demand of the traditional retail market has fallen sharply.Bank channel sale business becomes the most important business in precious metal sales industry,but the competition is getting more and more intense.At present,the bank channel sale business starts late,and has many deficiencies in internal control.Meanwhile,the precious metal sales industry is a capital-intensive and high-risk industry.Corporations and bank channel sale business are facing higher capital management risk,inventory management risk,futures risk and so on.Facing market environment and high-risk characteristics itself,precious metal sales corporations urgently need to improve internal control of bank channel sale business and enhance their management,so that they can improve operation and economic efficiency to build a foothold in the market.A company and its bank channel sale business were taken as the research objects in this paper.Author takes literature research,inductive and deductive research,and case analysis as the research methods.Author selects the typical bank channel sale business to analyze,and tries to find out the internal control problems in its business cycle.The author provides the effective improvement plans for the problems.The reasons behind those internal control problems include: the corporate management structure failing to meet the legal requirements,the internal control mainly relying on the accounting and finance department,unclearly power and responsibility of every position,the ineffective use of inventory management system,the risk assessment and identification failing to be carried out before the operation,and assessment and motivation measures failing to concern key point of risk.Then,based on the characteristics of the industry,the thesis tries to remind corporation managers to set up internal control department and leadership groups,use electronic management system of inventory to promote the transmission of information,fully identify and assess risk before the business carried out,formulate internal control measures,clear right and responsibility for job positions,and make detail assessment measures.We hope to provide reference about the internal control problems for other precious metals sales corporations in bank channel sale business,also provide reference for the theoretical and practical discussion on how to solve the internal control problems of bank channel sale business in the precious metal sales corporations.