Research On Internal Control Of Production And Inventory Of KB Liquid Forging Technology Company

It is very important for modern enterprises to establish a reasonable and effective internal control system in order to achieve steady development.However,in recent years,the absence of internal control has led to significant losses and even bankruptcy.The main purpose of internal control is to reduce losses and waste while preventing fraud,and hope to enhance the efficiency of enterprises by strengthening internal control.In manufacturing industry,the production and inventory link is the core of enterprise management and value creation,so it is very important to strengthen the internal control of production and inventory link in manufacturing enterprises.This paper takes KB liquid forging technology company as a case study.Firstly,the existing research results of internal control are classified and summarized.Then,the relevant "broker theory","information asymmetry theory","cybernetics" and "system theory" are elaborated,and the five elements theory of COSO framework is explained.Supported by field research,literature research and the above theory,this paper first divides the internal control of KB's production and inventory links into three aspects: production,inventory and cost accounting to introduce the existing control system and implementation status.Then,according to the actual management of production and inventory,the problems existing in the internal control of production and inventory link are found from three aspects.Then,according to the problems found,the causes of the problems are summarized from the perspective of the five elements of COSO framework.Finally,according to the five-factor theory,some suggestions for improvement are put forward.It is believed that KB can ensure the effectiveness of its internal control in production and inventory links by improving the internal control environment in production and inventory links,establishing a risk assessment system,implementing control activities in key links,creating a good information communication platform and establishing a sound supervision mechanism.