Research On Internal Control Of Procurement Business Of G Machinery Company

In recent years,the pace of market economy development in China has slowed down,the industry competition is becoming increasingly fierce,some weak internal control problems gradually exposed.Perfecting internal control is an important means for enterprises to optimize management and improve quality and efficiency.And the purchasing business is the beginning of all activities of the general enterprise,is the premise of the enterprise organization production and sales activities,it determines the cost and quality of the product.Therefore,the internal control of enterprise procurement business is particularly important,enterprises urgently need to find a set of internal control standards to meet their own development needs of procurement business.Since 21 st century,our government encourages enterprises to continuously strengthen the implementation of internal control work,to promote the internal audit work towards the systematic,normative,integrity of the policy-oriented development.A perfect internal control system has become a guarantee to ensure the quality of enterprise products,corporate reputation and ultimately realize the maximization of benefits.As we all know,because of the weak internal control of the procurement business and the existence of undercover operation,fraud in order to obtain personal interests,resulting in high quality prices of goods procured by enterprises,these phenomena in the mapping of social moral integrity system is lacking,the first thing should be solved is the enterprise's own internal control problems.In this paper,G Machinery Company procurement business internal control as the research object,G Machinery Company is a subsidiary of a large state-owned enterprises.The mechanical engineering industry in which it is located is the fundamental insdustry of a country and occupies an important position in the national economy.It has gradually recovered after the downlink of previous several years,industry demand has continued to recover and profitability has recovered steadily.In addition,G Machinery Company in 2003 began to use SAP system as the overall solution of enterprise management,closely follow the pace of the information age,the use of scientific management tools,integration of material resources management,human resources management,financial resources management and information resource management.Overall,the case company is a more typical enterprise.This article mainly from the study of domestic and foreign literature,using the combination of theory and case studies,the G Machinery Company procurement business internal control problem research,combined with the COSO Committee's internal control five elements of the framework,obtained the following research conclusions: G Machinery Company Although there is a general internal control system and framework,Specifically,however,its procurement business still lacks a good internal control environment,the risk assessment mechanism is not perfect,there are still some problems,such as insufficient professional competence of procurement personnel,no risk management department,inadequate division of duties,inadequate procurement management activities,and lax management of information technology departments.In this paper,some suggestions for improvement are put forward,including the construction of a good internal environment,the establishment of a risk assessment team to improve the risk assessment mechanism,the improvement of procurement business control activities of specific measures,the strengthening of information communication with internal and external relations and the strengthening of internal oversight mechanisms.Although there are some limitations in this paper,but hope that through the analysis of G Machinery Company's procurement business internal control of the status quo,G Machinery Company procurement business internal control management to play a certain positive role,but also look forward to other machinery enterprises have a certain reference significance.