Research On Internal Control Strategy Of Inventory In Changtai Cigarette Factory

The manufacturing industry is the main body of China's national economy.The added value of manufacturing accounts for 30% of the gross domestic product,which is crucial to the security of China's national economy and China's economic development.The 14 th Five-Year Plan has begun,and China has focused on planning a new development pattern with the domestic large cycle as the main body and the domestic and international dual cycles promoting each other since 2021,which brings corresponding market demand for the stable development of the manufacturing industry.However,the popularity of intelligent manufacturing,the Internet plus model and the impact of the epidemic,traditional manufacturing enterprises are confronted with severe challenges.Under this environment whether the inventory structure is reasonable,whether the capital turnover is smooth.The traditional manufacturing enterprises need to solve and improve the problem urgently.If enterprises want to gain a firm basis,they can only build and implement a scientific and effective internal control system,consolidate and strengthen the internal management foundation of enterprises,enhance their awareness of risk management and control and anti-risk capabilities,ensure the healthy return of liquidity,which will achieve sustainable development.In this paper,the internal control mechanism of enterprises was explored from the perspective of inventory.Taking Changtai Cigarette Factory as the study object,the internal control process system of enterprise inventory was sorted out.According to the cutting-edge research literature,for traditional manufacturing enterprises,establishing and improving the internal control mechanism contributes to resisting the general operating risk and reducing the loss of a certain scale to a certain extent.On the basis of above theory,the on-the-spot investigation and study were conduct and it was found that although Changtai Cigarette Factory had formed a set of internal control system customized according to its own situation after reorganization and adjustment,the actual implementation was still unsatisfactory.The defective products which were not disposed timely were accumulated in the cigarette factory continuously in the process of operation and the tobacco leaves were plagued by tobacco insects,which could not be effectively controlled.Besides,the warehouse site management was chaotic.In the order of identifying problems,summarizing them,exploring the causes,and proposing improvements,the problems of internal control of inventory in Changtai Cigarette Factory were investigated.In the light of five elements of COSO internal control framework,Changtai Cigarette Factory was identified weak in five links: Weak internal environment,failure to update the business processes of control activities in a timely manner,poor information communication and the absence of necessary risk management and internal supervision.Accordingly,it is proposed to take measures to perfect the internal control environment,establish the diversion process of the defective products from the classification of raw materials,auxiliary materials and finished products,establish a sound communication mechanism,improve the risk assessment and the internal supervision mechanism,etc.so as to establish and perfect that internal control mechanism in the factory.The paper aims at improving the current situation of poor inventory management in Changtai Cigarette Factory,reducing the excessive occupation of funds,increasing the turnover rate of inventory,and promoting the level of enterprise management by means of optimizing the internal control mechanism from the inventory perspective of Changtai Cigarette Factory.It is expected that the contents of this paper will be conducive to improving the internal control mechanism of inventory of enterprises in the same industry.