Research On The Internal Control Of AX Company

Since 2014,a large number of small private enterprises have emerged under the guidance of a series of national policies such as "double venture" and "company registration and subscription system".Small private enterprises play an extremely important role in stimulating peer competition,accelerating economic growth,increasing social employment,improving operational efficiency and maintaining social stability.However,the average life expectancy of private small enterprises in China is only 2.9 years,and about one million enterprises fail every year.Although the life cycle of private small enterprises is short and difficult to grow and strengthen,there are many reasons,but from the perspective of corporate governance,the main reason is that the lack or imperfection of internal control system makes private small enterprises frustrated on the road of rapid development.It can be seen that the internal control is not in place,which has seriously restricted the development of small private enterprises.Therefore,it is imperative to establish and improve an effective internal control system for small enterprises.In order to help small enterprises continuously improve their management level,enhance their ability to guard against risks,and promote their healthy development,the Ministry of Finance promulgated the "Standards for Internal Control of Small Enterprises"(trial implementation)on June 29,2017,which came into effect on January 1,2018.The formulation and implementation of the norm aims to guide small enterprises to establish and implement effective internal control system.The formulation and implementation of the norm fully reflects the government's emphasis on the construction and implementation of internal control system for private small enterprises.Under the circumstances of the state attaches great importance to the establishment and development of private small enterprises and the establishment and improvement of their internal control system,this paper takes AX Company as the research object,finds out its internal control problems and gives reasonable suggestions,which will provide useful model support for the construction and implementation of the internal control system of private small enterprises.Firstly,this paper expounds the relevant theoretical knowledge of the internal control of private small enterprises,such as the characteristics of private small enterprises,the characteristics of development,the internal control norms of private small enterprises and so on,which lays a solid theoretical foundation for the study of the internal control of private small enterprises.Secondly,combined with the questionnaire survey and interviews with key leaders of AX Company,this paper starts from five aspects of internal environment,risk assessment,internal control activities,information and communication,and internal supervision of AX Company,and finds and solves the problems existing in the process of formulating and implementing its internal control system.Finally,it combines with the Internal Control Regulations for Small Enterprises issued by the Ministry of Finance in June 2017.The theoretical norms of Fan(Trial Implementation)provide reasonable suggestions for the establishment,perfection and implementation of reasonable internal control system for private small enterprises AX,and eventually take private small enterprises AX as a research model,and apply its research results to private small enterprises with similar internal control problems with AX,so as to help more small enterprises become bigger and stronger.