Internal Control Perfection Of Small Companies Under The New ERM

Small enterprises play an important role in stabilizing economic growth,promoting supply-side reform,adjusting industrial structure and benefiting the people’s livelihood of Cathay and Thailand.They are the new force of economic development.However,the average life span of small businesses in China is less than three years.In terms of enterprise management,this situation is closely related to the improper design and operation of inner-control system in the management of small enterprises.The Standards of Enterprise Internal Control in 2008 lays more emphasis on standardizing the internal control of large and medium-sized enterprises,and the risk management framework issued in 2006 is aimed at the big enterprises.A large number of small enterprises strengthen the internal governance of enterprises and apply mechanically the internal control system of large enterprises,which not only consumes a large amount of money but also has not achieved significant results.On the contrary,due to the complex system and unreasonable post setting,it brings many inconveniences to the process approval and personnel management of enterprises,resulting in "excessive control" and "big enterprise disease".Based on this fact,the Ministry of Finance promulgated the "Standards for Internal Control of Small Enterprises(Trial)" in2017,to promote the construction of the holding system in small enterprises.Meanwhile,in2017,the COSO Committee first revised the Enterprise Risk Management(ERM)promulgated in 2004 to promote enterprise risk management and control,and to improve enterprise operational performance.In this paper,SX small enterprises are selected as the research object.Based on the revised the Enterprise Risk Management in 2017 and the Internal Control Standards for Small Enterprises(Trial),the risk management and internal control of small enterprises are analyzed by means of questionnaire survey,flow chart analysis and decision tree of critical control points judgment.Based on the analysis idea of point-to-surface integration,this paper first investigates and analyses the status quo of internal control construction of small enterprises in China by setting up questionnaires,emphasizing the necessity of strengthening the internal control of small enterprises,and then carries out analysis with specific cases.Through on-the-spot investigation of SX company,the main problems of internal control in SX company are investigated and understood.The research finds that the internal control defects faced by many small enterprises are also the internal control problems that SX company urgently needs to solve.Finally,this paper guided by the two latest theories,based on the optimized decision-making idea of "mission,values-objectives-risks-control",business objectives are redefined.Through risk analysis and flow chart analysis,this paper combs the risk points of enterprise production process,finds out the control points,judges the key control points of internal control according to the Decision Tree of ISO22000 Key Control Points,carries out control activities according to control points,optimizes the internal control of enterprises,and achieves enterprise goals.This method of improving internal control is not only applicable to SX company,but also to many small enterprises.This paper innovates and uses the two latest theories as guidance,which has certain theoretical value.The point-to-surface analysis method makes the analysis more objective,and is conducive to many small enterprises to improve internal control.