Research On Internal Control Of Procurement Business Of Company X

Frauds occur frequently all over the world,lack of internal control was an important factor and frauds in the procurement processaccount were the largest hits.And procurement costs cover the largest proportion of all costs.Therefore,it is very necessary to strengthen the internal control of procurement process to prevent and detect frauds and reduce costs.Based on the study and analysis of the standards or systems for internal control,procurement internal control and other related aspects,and taking Company X as an example,this article conducts a study on the problems existing in the internal control of procurement process of Company X,such as unreasonable organizational structure and unreasonable task division of management in term of the control environment,the great risks and loopholes in the procurement processes and control activities,and the backward management information system.In view of the above problems,the following pertinent improvement measures are put forward:optimizing the organizational structure and division of responsibilities,improving human resources policies,establishing a clean and self-disciplined corporate culture;improving the internal control measures of procurement processes,such as procurement planning,procurement methods and supplier selection,contract formulation,raw material acceptance,payment,and financial management and establishing supplier evaluation mechanism;and strengthening the information communication and audit supervision on the procurement activities.