Research On Internal Control Optimization Of Small And Medium Enterprises AN Company

As the fastest growing scientific and technological innovation force,small and medium-sized enterprises are the important pillar of national economic and social development.SMEs play an important role in stabilizing growth,promoting reform,adjusting structure,benefiting people’s livelihood and preventing risks.Chinese economic market is in a critical period of industrial structure upgrading and transformation.The Party Central Committee and the State Council attach great importance to the development of small and medium-sized enterprises.They have introduced a series of policies and measures in fiscal and taxation,the business environment,and public services,with positive results.However,we should also note that due to internal factors such as small scale,inadequate systems,and lack of awareness of internal control,small and medium-sized enterprises have certain limitations in their own development,and are also easily affected by external objective factors,which leads to many small and medium-sized enterprises unable to operate in a healthy and stable manner and lack of lasting vitality.Due to poor management of SMEs,bankruptcies are common.The lack of internal control is one of the most important internal factors that affect the operation and development of small and medium-sized enterprises.AN company,as a typical small and medium-sized enterprise,also faces challenges in its development.This paper focuses on small and medium-sized enterprises,adopts literature review method and case study method,based on the theoretical knowledge of internal control,the status of internal control of AN company was analyzed.This paper introduces the current situation of AN company’s internal environment through its corporate culture,the standardization of corporate governance system,organizational structure,human resource policies and measures,post competency.Through the goal setting,risk identification,risk analysis,and risk response,the current status of AN company’s risk assessment is introduced.Then,this paper introduces the current situation of AN company’s control activities through authorization approval management,incompatible job separation,budget management,accounting system control,capital management,information systemcontrol and performance evaluation control,and introduces the current status of AN company’s information and communication through information systems,information collection and information communication.Finally,through the internal supervision mechanism and internal control system,the status of internal supervision is introduced.Then fully consider the characteristics of AN company as a small and medium-sized enterprise,and find out the specific problems existing in the internal control of AN company,which are imperfect organizational functions,inadequate implementation of rules and regulations,insufficient risk identification and prevention,failure of internal control mechanism,passive information exchange,etc.These problems obviously affect the healthy development of AN company.Through in-depth analysis of these issues,it is found that the main reasons for these problems are irrational organizational structure settings,weak internal control awareness,imperfect risk control system,imperfect internal control systems,and unsmooth information communication channels.Finally,based on the principles of comprehensiveness,importance,checks and balances,adaptability,and cost-effectiveness,the author puts forward a feasible plan and designs related systems and processes.It is hoped that this article can optimize the internal control situation of AN company,help AN company achieve its development goals,improve its competitiveness and viability,and provide reference for other small and medium-sized enterprises to establish and optimize internal control.