Study On Internal Control Of Procurement And Payment Cycle Of TK Company

In recent years,with the development of economy,Chinese feed industry has made great progress.Since 2012,Chinese feed output has steadily ranked first in the world.Although the industry has made great achievements,Chinese feed industry is big but not good,and the situation has not been alleviated.As for the feed industry,in order to maintain a stable position in the fierce market competition,the management should not only pay attention to the sales department’s business volume and development performance,but also need to control the purchase cost of enterprises.Taking TK company’s purchasing process as an example,this paper studies the effectiveness of internal control in its actual purchasing process,hoping to improve the problems existing in the internal control of TK company’s purchasing process in order to improve the competitiveness of the company,and at the same time to provide reference for other feed companies in formulating or improving the internal control system in the purchasing process.Combining questionnaire survey and inquiry,this paper evaluates the effectiveness of the internal control of the company’s procurement business from the five elements of internal control.The evaluation results show that there are some problems in the internal control of TK company’s purchasing business,such as insufficient awareness of internal control of TK company’s management,lack of training on internal control of internal staff,absence of a perfect risk assessment system,imperfect purchasing business control activities,poor communication between internal and external information,and inadequate internal supervision.Then,through the analysis of the problems existing in the internal control of enterprise procurement activities,this paper puts forward some suggestions for improving the company’s situation: improving the management awareness of TK company and optimizing the internal control system;establishing a perfect risk assessment system;improving the supplier management system,strengthening the tracking management of procurement contracts;holding regular exchange meetings on raw materials market,which is more important.The suppliers should communicate and improve the internal information communication mechanism,and establish the internal control self-evaluation mechanism and anti-fraud mechanism.The research in this paper is helpful to optimize the internal control of TK company’s purchasing business,improve the efficiency of purchasing,reduce the cost of purchasing,andthen improve the competitiveness of TK company.At the same time,it can provide reference for other feed companies in formulating or improving the internal control of the procurement process.