Research On Internal Control Of Procurement In Lenzing Fibers(Shanghai) Co.,Ltd

Internal Control is crucial important for the survival and development of a company.It has been the eternal topic for enhancing efficiency and effectiveness of a company.Procurement is the key part of business operation.Building a perfect internal control system can make sure the quality of material procurement,drop the production and purchasing costs and keep away from fraud.Meanwhile,it can also help the company to operate orderly.Lenzing Fibers(Shanghai)Co.,Ltd is a wholly owned company by Lenzing group,which is located in Austria.Lenzing Fibers(Shanghai)Co.,ltd was built in Shanghai since 2003,engaging in the textile fibers selling and promoting in China market.With the rapid developing and continue to invest in China,the management of the company gradually aware the lagging internal control cannot meet the requirement of company's development.Long term's strategy of focusing on business but ignoring internal control has caused the weakness on internal control of Procurement.Based on the theory of Internal Control and its element,combing with procurement activities,the thesis will start from current situations with internal control issues of unreasonable approval authorities,lacking management concept and unsound organization structure etc.Thereafter,digging into the fundamental cause of the issues according to the elements of internal control and through the questionnaire survey method,determining the root cause of the issue is short of internal control on procurement.Finally,the thesis redesigns internal control system of procurement and optimizes the internal control scheme.The thesis also states the improvements and key points which need to be strengthened,in the end,makes a conclusion on the program and looks toward future.The thesis states the initial success of the improvements of internal control on procurement,ascertains the subsequent measurements for the improvements.It will be the solid foundation for continuing optimization.The results of research on internal control of procurement in this thesis will provide reference and experience for middle size company.