Research On Internal Control Of Imported Ore Purchasing Business Of XG Company Limited

At present,while the global economic environment is increasingly complex,Sino US trade frictions continue.The imported ore purchasing business directly participates in international competition,and mining giants use their resource advantages to manipulate prices,and the business risks continue to increase.In recent years,the scale of China's steel industry continues to expand.When the state is actively promoting supply side reform and eliminating backward production capacity,the homogeneous competition in the iron and steel industry becomes fierce.Enterprises purchase a large number of imported ore and spend a huge amount of money,highly dependent on imported ore.Their internal control and management are a little careless,which can easily lead to problems such as low quality ore and high price and large capital occupation,which directly affect the benefits of iron and steel enterprises.As a special type of purchasing for iron and steel enterprises,the internal control system of perfecting the imported ore purchasing business cannot copy the experience of existing successful enterprises.Therefore,it is of great theoretical and practical significance to study the internal control of imported ore purchasing business in iron and steel enterprises.In this paper,the author follows the basic research idea of "theoretical overview,case introduction,problem analysis and countermeasures",and uses the case study method and the literature study method to carry out the research.Management activities are the core of business activities,and control function is an indispensable element in enterprise management.The internal control process of imported ore purchasing business is subdivided into:preparation of plans,requisition and approval;select suppliers,conclude and execute procurement contracts;Logistics transport and acceptance;Payment and accounting control four links.Internal control of imported ore purchasing business: attach importance to planning,request for purchase approval and deal with international trade risks;strengthen supplier and pricing management to cope with seller's market;strengthen process control to deal with long–term contract execution;strengthening the internal control of monetary funds to deal with large capital needs and other characteristics.Iron and steel enterprises should establish a highly integrated internal control system of imported ore purchasing business and standardize supervision of imported ore purchasing business to effectively improve enterprise benefits.The case studied in this article XG Co.,Ltd.is a state–owned steel company in the Province.Since 2017,the country has vigorously promoted supply-side reform,and the company's sales revenue has continued to grow,and China's top 500 enterprises have been constantly moving forward.XG has a history of nearly 20 years in which it has set up a full-time imported ore purchasing agency and staffed it with relevant personnel.The average imported ore from 2011 to 2019 is 9.092 million tons,with the amount as high as 7.756 billion yuan,which is highly dependent on imported ore.The company has set up the internal control process and the critical control point respectively in each link of the imported ore purchasing business process,and built a relatively perfect internal control system,which has achieved certain results.The author carefully sorted out the internal control process of XG company's imported ore purchasing business,and found that there are still the following problems:first,the imported ore purchasing plan control is unreasonable;secondly,procurement agencies set up complex,unreasonable staffing;third,materials into the factory acceptance form is not standard;fourth,the supervision and management of the repatriation of foreign currency funds is not strong.The reasons for the above problems are manifold.First,the management gradually strengthened the awareness of the internal control of the company's overall business,but failed to fully understand the specific process of the imported ore purchasing business;At the same time,the company is short of non-steel professionals(such as international trade,internal control,etc.),so it is difficult to accurately assess the risks of procurement business and take active measures to deal with them.Secondly,the internal control consciousness of imported ore purchasing personnel is weak;Third,the internal management information system started late,lacking the overall top-level design ideas.The system has become an "information island",with insufficient information sharing in the ore transportation and acceptance process.The internal supervision lacks information support and focuses on form.Fourth,there is a "blind spot" of foreign currency funds in the centralized management and control of company funds.On the one hand,this paper systematically sorts out internal control theory and its development by referring to literature.On the other hand,aiming at the specific problems existing in the internal control process of XG company's imported ore purchasing business,a series of improvement measures are proposed.First,constantly improve the management system,so that employees in the specific business rules to follow,there are rules to follow;Actively introduce professional talents to build a soundrisk assessment system;Second,strengthen the internal control system training,improve the staff's awareness of internal control;Third,attach importance to the top-level design of management information system,realize information sharing,and implement the internal supervision function;The fourth company should strengthen the control of foreign exchange funds,improve the performance appraisal system,and give full play to its role.Taking XG Co.,Ltd.as an example,this paper deeply analyzes the operation characteristics,internal control status,existing problems and causes of its imported ore purchasing business,and explores feasible optimization measures,which not only has practical value for XG Co.,Ltd.,but also provides reference for other iron and steel companies and other industries to strengthen internal control,which has certain academic significance.