Research On Internal Control Of Purchasing Business Of K Automobile Company

Purchasing is the first step for enterprises to carry out production and operation.On the premise of guaranteeing quality,the reduction of material purchasing cost can effectively reduce production costs and increase profits.At the same time,due to the high frequency and heavy workload of procurement business,it is also a link that is prone to problems.The imperfect internal control system of the company is one of the reasons for this phenomenon.Therefore,in order to cope with the increasingly fierce market competition,it is necessary to improve the internal control of the procurement process.K Company is a Sino-foreign joint venture automobile manufacturer.This paper takes the purchase business of K Automobile Company as the research object.Firstly,it summarizes a large number of domestic and foreign related literature works by using the method of literature research;secondly,it collects public information by interviewing K Automobile Company employees at different positions to understand the basic situation of the company and the actual situation of the purchase business.The management information of the company's purchasing business;In addition,field investigation method is used to enter K company for field investigation to understand the company's production and operation status;Finally,according to the collected data and the company's actual case,the problems of the company's purchasing business internal control are analyzed,and the causes of the problems are analyzed from the five elements of COSO internal control,and the improvement of K company's purchasing business is proposed.The countermeasures and suggestions of Ministry control.The conclusion part is the summary of this paper,the shortcomings of this paper and the prospects for the future.This paper analyses the current situation of internal control of K automobile company's purchasing business,analyses the existing problems and the reasons from the perspective of five elements of COSO internal control.Finally,the paper puts forward some suggestions on the optimization of internal control of purchasing business for K Automobile Company.,including optimizing the internal control environment,improving internal control activities,establishing an effective risk assessment mechanism,strengthening information communication and carrying out the following.Effectiveness monitoring provides referencefor internal control of purchasing business of other companies in the automotive industry,and also sets standards for relevant parts suppliers in the industry.