Case Study On Internal Control Of Sales And Receivables Cycle In Xin Hua Pharmaceutical

Xinhua pharmaceutical as A share and H share large medicine company,internal control of sales and collection occur some defect,lead to too large credit quota,several department repeated credit for one customer,too much bad debt happen,at last cause unhealthy influence.Despite there are too much study of sales and collection cycle internal control,but research on pharmaceutical industry is too little;moreover,forthcoming research on pharmaceutical industry mainly focus on law institution,government control,industry autonomy,and outside aspect so on,rarely with a view to inside respect;forthcoming research on pharmaceutical industry inside mainly focus on research,manufacture,inventory link etc,rarely refer to sales segment.Therefore,this paper chooses to deepen the study of this case on the basis of the current situation after rectification.This paper firstly introduce Hinhua pharmaceutical internal condition clearly.Then analyzing Xinhua pharmaceutical internal control status from five factors one by one,finding out reasons cause it's control defect,weak control environment,ignore usual risk management,loose receivable management,imperfect mechanism of information and communication,invalid control supervision.finally,after literature study,give some suggestions to it's control defect purposefully,perfect govern structure,improve organization structure,perfect risk evaluate mechanism,improve employers quality,contin-uing improvement credit policy,improve inspire and examine mechanism,perfect receivable collection mechanism,improve information and communication mechanism,strengthen internal supervision.Conclusion of study not only contribute to Xinhua pharmaceutical complete it's internal control system and supply it's control gap,but also give a reference to the same kind of company.At the same time,the process of research centre on control objectives expanding tightly,analyzing the operating mechanism of internal control five factors thoroughly in the case,deepen the theory of control objectives and control mechanism,enriching the intension of internal control institution.