Research On Internal Control System Optimization Of Company A

As the change of the world economic environment,enterprises are facing increasing pressure and risk,especially the development of small businesses which will face more and more severe challenges.In recent years,with the various crises that have emerged from the well-known enterprises,the cause of these crises has been revealed,because of the lack of improvement in the structure of the enterprise’s internal control system.Therefore,in order to achieve long-term sustainable and healthy development,enterprises must establish and improve the internal control system,so that all employees can participate in the construction of the internal control system.Through the process of continuous improvement and circulation,enterprises can optimize the internal control system,achieve effective internal control,improve their competitiveness,and achieve the development goals of enterprises.The research data in this paper is based on the field survey of small enterprises represented by company A.The author draws lessons from foreign COSO internal control framework and China’s Enterprise Internal Control Basic Norms,Enterprise Internal Control Evaluation Guidelines,Enterprise Internal Control Application Guidelines and other research tools and adopts the methods of literature research,inductive inference,cases analysis and so on.What’s more,it summarizes the related research on external and internal control,took raising questions,analyzes problems and solved problems as research ideas through domestic and overseas research in recent years.Meanwhile,the internal control system of company A is studied from five elements,including control environment,risk assessment,control activities,information and communication,and supervision.It is of great practical significance for company A to optimize its internal control system,improve the management level and reduce the risks by evaluating and putting forward optimization measures.This thesis is primarily divided into six chapters.Chapter one and Chapter two mainly elaborate the research contents and methods,research ideas and thesis structure,internal control theory and literature review.Chapter three principally introduces the current situation of internal control based on the actual data of Company A,and paves the way for the evaluation and analysis of Chapter four.In addition,Chapter four and Chapter five are mainly based on the actual internal status data of Company A to evaluate and analyze and proposes optimization measures.Through research and analysis,the author finds that the enterprise has some problems in controlling the environment,such as unreasonable organizational structure,inadequate development strategy,imperfect human resources policy and enterprise culture to be constructed.In the aspect of risk assessment,there are some problems,such as weak risk awareness and imperfect risk management system.Meanwhile,in the aspect of control activities,the defects in system design and operation are pointed out through the analysis of major business,such as comprehensive budget management,fund activities,contract management,procurement business and sales business.Moreover,in the aspect of information and communication,there are some problems,such as poor effectiveness of internal information communication and neglect of external information communication.What’s more,in the aspect of supervision,there are also some problems,such as imperfect internal supervision mechanism and weak external supervision.In the Chapter five,the corresponding optimization measures are put forward from five elements of internal control.Through the research and analysis of the internal control system of company A in the first five chapters,Chapter six draws the conclusions of this research and puts forward the shortcomings and prospects of the research.In conclusion,first of all,small enterprises should speed up the construction of internal control system according to their own actual situation.Secondly,the importance of enterprise management plays a key role in the construction of internal control system of small enterprises.Thirdly,small enterprises should strengthen the construction of enterprise culture.Last but not the least,small enterprises must strengthen the role of internal supervision.