Research On Internal Control Of D Smes Under The Highly Centralized Mode

Small and medium-sized enterprises(SMES)are the basic forces to promote the development of the national economy,construct the main body of the market economy and promote social stability.They play an important role in ensuring the moderate growth of the national economy,easing the pressure of employment and optimizing the economic structure.However,compared with foreign countries,the life of Chinese SMES is generally shorter,and internal control problem is one of the important reasons.Compared with large enterprises,SMES have fewer positions,fewer departments,fewer processes,and most of them are in the highly centralized mode.Although this is conducive to the full mobilization of resources,it also brings many internal control problems,such as strong color of human governance,lack of scientific decision-making,lack of enthusiasm of employees and so on.Therefore,in order to better optimize the internal control of SMES,we should study the internal control of enterprises under the highly centralized mode,analyze the internal control problems brought by this mode,and propose more targeted solutions.The case D enterprise selected in this paper is a limited liability company,whose decision-making,supervision,personnel,finance and other powers are all in the hands of the chairman,which is a typical highly centralized mode.At present,the enterprise has many internal control problems due to its high centralization.Through the study of typical cases,the author hopes to help D enterprise optimize its internal control and provide references for other similar enterprises to discover internal control problems and improve internal control.This paper adopts the methods of literature analysis,case study and field investigation,and firstly summarizes the literature related to internal control and centralization of SMES,and then according to the information of the investigation to analyze D enterprise internal control present situation,found that highly centralized model to the enterprise internal control has brought many internal control problems.In terms of the controlling environment,there are problems such as unbalanced governance structure and cronyism.In terms of the risk assessment,there are problems such as overconfidence and arbitrariness.In terms of the controlling activities,there are problems such as incompatibility,unclear separation of duties and approval beyond the level.In terms of the information and communication,there are problems such as overstepping the level of reporting and one word hall.In terms of the internal supervision,there are problems such as the failure of supervision system and the lack of internal audit.In view of the above problems and the actual situation of D,this paper proposes the following suggestions from the perspective of the five elements of internal control: Optimize the control environment by scientific decentralization and improving human resources policies;To improve the risk assessment level by establishing and implementing the risk assessment system and improving the risk response strategy;Standardize the control activities by formulating and implementing the job responsibility manual and strict authorization and approval;Strengthen the ability of information communication by strictly reporting the standard and respecting the communication achievements of the subordinates;Improve the internal supervision mechanism by strengthening the consciousness of internal supervision and setting up independent internal audit posts.