Research On Optimization Of HY Company’s Internal Control

Internal control is an indispensable method of self-regulation and selfrestriction in corporate governance.Failure of internal control of an enterprise will increase the cost of enterprise management and cause loss of assets,and even put the company at huge operational risks.It can seriously affect the profits of the enterprise.However,cases of major losses at home and abroad caused by internal control failures have occurred frequently.In response to such problems,domestic and foreign laws and regulations have been issued one after another.Judging from the current situation in China,the internal control of listed companies has been greatly improved overall,but there are still many companies that have implemented internal control construction poorly,especially some chemical companies,which focus on profits but despise internal control.They believe that internal control costs a lot and its effects won’t show in short term,so they do not pay attention to the construction of internal control.Therefore,the construction of internal control system which applies to the chemical industry is both important and urgent,and should be highly valued.At present,most of China’s research on internal control is at the theoretical level and focus on listed companies.The subjective,HY company,in this article is a non-listed medium-sized chemical company,which can provide a reference for the internal control evaluation and improvement of the same type of company.This article is mainly divided into six parts.The first part of this article is introduction,and the main content is the research background,a review of domestic and foreign literature,the research content and research methods of this article.In the second part,this article introduces the internal control related concepts,internal control theory,the basic and internal control evaluation method theory.The third part introduces the current status of HY’s internal control.The fourth part is about the evaluation of internal control of the company.The evaluation process uses a combination of AHP and fuzzy comprehensive evaluation.In the fifth part,on the basis of analyzing the evaluation results,this paper points out the problems existing in the company’s internal control and makes some recommendations.The sixth part is the conclusion,which summarizes the research results of this paper and the prospects for future research.The main contributions of this paper include: First,based on domestic norms and guidelines of internal control,this article establishes an internal control evaluation index system which is suitable for HY company according to its situation of internal control,which can provide a reference for evaluation of internal control of HY company in the future.Second,the evaluation method used in this paper is a combination of analytic hierarchy process and fuzzy comprehensive evaluation,which provides a reference for studying the application of these two methods in enterprise internal control evaluation.Third,this paper finds out the problems of HY company’s internal control including the lack of risk assessment system,the lack of anti-fraud mechanism,the lack of internal control self-evaluation and defect report,etc.,and makes some suggestions.These suggestions such as reasonable risk assessment system,reporting and complaint system,whistleblower protection system and the organization of internal control evaluation can help to improve HY’s internal control,which can reduce the losses caused by internal control problems,and improve the efficiency of operations.Last,there are few domestic research on internal control of medium-sized companies,and there is a lack of systematic theory about internal control of medium-sized chemical enterprises in China.This paper can provide a reference for other similar companies.