Research On Internal Control Based On Total Budget Management

Nowadays,the market environment is becoming more and more complicated,and the scale of enterprises is getting larger and larger.Enterprises with efficient and effective internal control systems account for a large proportion of their sufficient advantages in the fierce market competition in the future.However,most state-owned enterprises have not formed a systematic,quantified internal control system.And this fragmented management has affected the effectiveness of internal control.Total budget management has become one of the most important management tools for modern enterprises,which is an important measure to promote the construction of an internal control system.Therefore,it is a feasible measure to improve enterprise internal control based on total budget management.This thesis takes F Company as an example,and the internal control system is built based on total budget management.And then the current status of F Company’s internal control system is analyzed,and looks for internal control in existing problems in implementation is investigated.Finally,we put forward strategies for improving internal control for F Company based on total budget management.The specific content includes:First,on the basis of the existing theoretical discussions,we discuss the relationship between internal control and total budget management in depth,and explain the importance of the application of total budget management to internal control.Second,we systematically analyze the current status of internal control of F Company,by the way of communicating with representatives of employees in each department via in-depth interview;then,the problems existing in the internal control of F Company are analyzed.Third,For F Company,an internal control system is built based on total budget management from two aspects: management level,internal environment,information systems and internal supervision,and operation process level including budget making,budget execution,and budget assessment.Based on this,relevant suggestions are put forward to the improvement of the company’s internal control.Second,we systematically analyze the current status of internal control of F Company,by the way of communicating with representatives of employees in each department via in-depth interview;then,the problems existing in the internal control of F Company are analyzed.Third,For F Company,an internal control system is built based on total budget management from two aspects: management level,internal environment,information systems and internal supervision,and operation process level including budget making,budget execution,and budgetassessment.Based on this,relevant suggestions are put forward to the improvement of the company’s internal control.The significance of this case study is to study the actual situation of F Company’s internal control system reform planning based on total budget management,to promote the systemization and institutionalization of the company’s internal control construction,and to analyze the specific application of total budget management to the company’s internal control.And we also pointed out scientific total budget management can really help enterprises to strengthen internal control.In addition,we also hope that other companies with similar situations can get some inspiration from it to improve internal control.