Research On The Account Receivable Internal Control Of L Corporation

With the comprehensively deepening reform of the market economy system in our country,the competition from all walks of life is becoming increasingly fierce.In order to survive and develop in the intense market competition,an increasing number of companies adopt sell on credit to increase the turnover.However,with the credit mode has been widely used,too much charge sales and business credit lacking,which cause the amount of account receivable and bad debt losses are growing rapidly,affect the flow of funds,increase opportunity cost,administrative cost and the operating risks.Therefore,it has become an urgent matter for enterprises to strengthen the internal control of accounts receivable and reduce the account receivable.The specific object of the study is L company,which is a solely state-owned construction company,the company has established its own internal control system of accounts receivable.Although the company has a certain awareness of risk management of accounts receivable,due to the operating defects of the L company's internal control system of accounts receivable,and the amount of accounts receivable and bad debt loss are increasing gradually,which is eroding L company's profits step by step,and increasing the financial risk and operational risk of L company.Therefore,it is necessary to study existing internal control of accounts receivable of L company.This paper draws on the research achievements at home and abroad,and on the basis of theory of internal control and credit management,according to COSO internal control framework system,it conducts an overall study on the current internal control of accounts receivable of L company by literature research method,questionnaire method and quantity analysis method.it was analyzed systematically that L company has five major defects in the internal control system of accounts receivable.Finally,according to the specific deficiencies of the L company's internal control of accounts receivable,this paper proposes some appropriate measures to improve the internal control of accounts receivable system of L company from the objectives and principles of improvement,these measures will reduce account receivable,the risk of bad debts and financial risk effectively,and promote the healthy and stable development of L company.In the meantime,this paper also hopes to provide some reference to strengthen the internal control of accounts receivable for the enterprises in the same situation.