Research On Internal Control Optimization Ofdomestic Trade Agency Business Of Tongda Company

In the late 1990 s,after the state liberalized the right of foreign trade management,the traditional state-owned foreign trade companies,which depended on the import and export franchise and policy monopoly resources,almost lost their competitive advantage overnight and had to face the market and start to make their own way.In order to survive and develop,many state-owned trading companies have developed domestic trade agency business of bulk commodities with their own capital and credit advantages.Since 2012,due to the lack of internal control and the loopholes in supervision,many state-owned trading companies have carried out domestic steel trade agency business,which has evolved into a financing trade with no steel physical transaction and only for the purpose of financing,breaking out the "steel trade event",which has brought huge losses to state-owned assets and caused adverse social impact.To this end,SASAC issued a series of document notices,requiring state-owned trading companies to strengthen the management and control of business,strictly prohibit financing trade,and effectively prevent business risks.To strengthen the internal control of domestic trade agency business of state-owned trading companies is not only to implement the requirements of SASAC and prevent the occurrence of financing trade risks,but also to strengthen the internal control of enterprises to achieve high-quality development.Tongda Trading Company,as a traditional state-owned foreign trade company,through business transformation,at present domestic trade agency business of bulk commodities has accounted for more than 50% of all business.This paper takes the domestic trade agency business of Tongda company as the research object,points out the risks and problems of its domestic trade agency business through case study and questionnaire survey,and analyzes the causes systematically and comprehensively based on the theory of five elements of internal control,and puts forward suggestions for optimization and improvement.It provides a reference for state-owned trading companies to strengthen the management and control of domestic trade agency business and improve business quality.The main conclusions of this paper are as follows:(1)there are some problems in Tongda's domestic trade agency business,such as incomplete collection of customer information,unclear responsibilities for payment approval,mismatching of capital budget and execution,large amount of accounts receivable arising from credit sale business,lax examination of mortgage guarantee,unreasonable allocation of human resources,etc.(2)This study found that the main reasons for the problems in Tongda's domestic trade agency business are: lack of balance in organizational structure,imperfect human resource management system,weak internal control awareness of business personnel;failure to establish business risk management organization and emergency plan;lack of customer credit management,lack of adaptability in business payment approval process,failure to strictly implement business process,failure to Evaluation and correction of the implementation of the capital budget;the integration of financial and business information has not been realized;the business supervision system is not perfect and the supervision force is not strong.(3)In this paper,suggestions are put forward from the aspects of standardizing the organizational structure,strengthening the construction of business talents,establishing risk management institutions and response plans,optimizing payment approval procedures,implementing customer credit management,promoting the integration of financial and business information,and establishing internal supervision and management system.