Case Study On Internal Control Of Procurement Of A Steel Company

As China's economy has entered a new normal,the development of the steel industry faces many challenges.The problems of fierce competition,low gross profit margin and sluggish development are seriously restricting the further development of the steel industry.As the starting point of enterprise's operations,the procurement plays a vital role in the cost control of steel companies.Therefore,in this context,optimizing the internal control of steel companies,strengthening internal cost management,helping steel companies ensure the quality and price of raw materials in the procurement process,and improving the competitiveness of output products,which are of great significance to the future development of steel enterprises.This article takes A steel enterprise as the research object,focuses on the internal control of procurement business,and uses case analysis method to elaborate the status and deficiencies in the all aspects of internal control of procurement,such as procurement plan management,purchase application management,supplier and purchase pricing management,procurement contract management,procurement execution and procurement accounting control.The study found that there are many deficiencies in internal control of procurement of A steel enterprises,mainly as follows: the procurement plan is not reasonable enough,the supplier selection is improper,the procurement pricing mechanism is not scientific,the procurement contract control is unreasonable,the acceptance procedure is not standardized,and the payment system is improperly formulated.According to the defects existing in the internal control of the procurement business,the reasons are mainly caused by the not standardized internal control environment of procurement operations,the weak sense of internal control of procurement personnel and the inadequate internal supervision of procurement.Finally,corresponding improvement measures are proposed,including: setting procurement volume based on actual demand,standardizing supplier evaluation and selection system,improving procurement pricing mechanism,strengthening procurement contract control,improving procurement personnel's internal control awareness,improving the acceptance procedures,optimizing the procurement payment procedures,and taking comprehensive measures to strengthen internal supervision and ameliorate the construction of internal control environment.It is hoped that through the above measures,the risks of A enterprises in the procurement process will be reduced,the internal control system will be perfected,and the overall operational efficiency and competitiveness of the enterprises will be improved.This research provides a theoretical reference for the perfection of internal control of A steel company's procurement business,and has certain reference value for the establishment and improvement of the internal control system of other companies in this industry.