A Study On Internal Control Of Inventory Management In KSM Auto Parts Company

With the development of economic globalization,enterprises competition becomes more and more fierce.The separation of management right and ownership of enterprise requires enterprises to establish a set of practical,efficient and perfect internal control system to control and supervise the management of enterprises.Aiming at preventing and correcting mistakes,the internal control is applied in the field of management to ensure the safety and integrity of the enterprise's assets,and enhance the operation and management efficiency of the enterprise so as to achieve the enterprise value.At the same time,as an important corporate asset,especially for manufacturing companies,inventory almost accounts for 40% to 60% of total current assets.At the same time,due to the increasing inventory pressure,inventory management has also exposed some problems,high inventory cost,capital takes up big and low capital utilization have became the main problem restricting the development of manufacturing industry.The company should be managed in a more strict way.Internal control of inventory is a subsystem of internal control of an enterprise,which is an important part of receiving and storing cash for production and sales.If there is any problems in the internal control of inventory,it will cause a great loss to the enterprise.Therefore,optimizing the internal control system of inventory is of great significance to the development of an enterprise and is also an important aspect of improving the status quo of the enterprise.A case research method is adopted in this paper,namely—the identifying,analysis and solution to the problems under the principles of researching.Firstly,based on the theory of inventory control and internal control of inventory,the research status of relevant literature at home and abroad is reviewed and theoretical support is provided for the case analysis below.Then,based on the case analysis of KSM auto parts company,this paper analyzes the current situation of the company and analyzes the existing problems and the causes of the problems.Finally,from the perspective of five elements of internal control,company inventory management internal control overall framework will be optimized,which indicates the optimization and improvement that enterprises should make in controlling the environment,risk assessment,control activities,information and communication systems and supervision activities.From the physical inventory flow and value flow perspective,the key control point to optimize the inventory of specific business processes has been pointed out.Then the specific recommendations on internal control based on the cost-benefit principles are presented on the activities of stock check-in,warehousing and stock check-out involved in the inventory cycle.It provides a new train of thought to improve the efficiency of inventory management and achieve the goal of enterprise value.This paper also provide a good reference for other manufacturing industries.