Case Study Of SH Company's Procurement Business Internal Control

In recent years,the industry competition has become increasingly fierce.Some enterprises blindly pursue economic interests while ignoring the long-term development of enterprises,and do not pay attention to the management of internal control.As a result,many enterprises fail because of the poor management of internal control.Every level of company operation involves internal control management,perfect internal control system,need to take into account various production.As the starting point of enterprise production and operation,procurement business is closely linked with inventory.Strengthening internal control of procurement business plays an important role in preventing risks and realizing sustainable development of enterprises.In the way of case analysis,this paper first introduces some literature review of related theories,research methods and contents,contributions and shortcomings of this paper.The internal control status of SH Petrochemical Company's purchasing business is introduced.Firstly,the internal environment of SH Petrochemical Company is analyzed from its organizational structure,working mechanism,responsibility allocation and authorization management.Secondly,the current situation of control activities is analyzed from four aspects: crude oil procurement,crude oil procurement in Japan,refined oil procurement and general material procurement.According to the specific requirements of relevant theories and normative documents in Basic Standards of Enterprise Internal Control and Guidelines for Application of Enterprise Internal Control No.7-Purchasing Business,the internal control environment of SH Petrochemical Company is optimized.With the further improvement of internal control.Through the analysis of the internal control of the procurement business of SH Petrochemical Company,we can find that it is indispensable to improve the internal control of the procurement business,to improve the system and to communicate information.It is hoped that this paper can play a positive role in establishing and improving internal control for other enterprises and promoting the healthy development of economic activities in the industry on the basis of solving the internal control problems of SH Petrochemical Company's procurement business.