A Study On Internal Control Of External Investment Of Private Eenterprises

With the development of China’s market economy,the level of national economy has been continuously improved.In the process of continuous development and improvement of China’s market,many private enterprises have accumulated a lot of capital,which has directly led to the upsurge of private enterprises’ enthusiasm for external investment.In recent years,the external investment activities of private enterprises in China are becoming more and more frequent,and the scope of investment involved is gradually expanding,and the scale of investment has also repeatedly reached a new high,which has a great impact on the development of enterprises.However,there are many deficiencies in the process of external investment in private enterprises in China,the most obvious is the lack of reasonable and effective internal control in external investment,there are decision-making links,supervision is not in place,the examination and approval process is unreasonable,the procedure is not in accordance with the regulations and so on,and the phenomenon of blind external investment is also more common,which makes the external investment activities of private enterprises end in failure,causing serious economic losses to enterprises,society and the country.In order to solve the problem of internal control failure in the process of external investment,it is necessary to perfect the internal control system of Chinese enterprises,especially private enterprises,strengthen the internal control management of enterprises in the process of external investment,and reduce the failure rate of enterprises’ external investment as far as possible.In view of this problem,this paper takes the private enterprise Eagle Agriculture and Animal Husbandry Group incorporated company as the object to carry on the concrete case study.First of all,through the literature research method,this paper makes a detailed analysis and introduction related concepts and basic theoretical knowledge related to theinternal control of enterprises’ external investment.Secondly,the case analysis —— take the five elements of enterprise internal control as the logical main line of the whole article,from the perspective of the five elements of internal control,in-depth and meticulous analysis of the problems and reasons in the external investment of Eagle farming and animal husbandry,and put forward relevant solutions to the problems existing in the case.Finally,it is concluded that enterprises need to establish specialization.The conclusion that belongs to the internal control system of external investment to reduce the failure rate of external investment.In view of the problems existing in the internal control of external investment in agriculture and animal husbandry of Eagle,the following suggestions are put forward from the five elements of internal control: first,we should set up an investment decision center with high professional level to clarify the main body and responsibility of the decision-making;second,in the decision-making link of the project,we should make clear the distribution of responsibilities of each department and strengthen the management of the audit process of the investment project;finally,we should strengthen the internal audit supervision of the investment project after investment and reduce the investment failure rate.The purpose of this paper is to take Eagle farming and animal husbandry as a specific case,put forward the relevant suggestions to optimize the internal control of Eagle farming and animal husbandry external investment,and provide relevant reference experience for other similar private enterprises in the process of external investment internal control management,so as to help private enterprises reduce unnecessary risks.