| Since 2018,China’s economy has faced a complex and grim situation.As an important pillar of the national economy,the automobile industry has maintained sustained growth for 28 consecutive years,and its annual production and sales volume have ranked first in the world for 10 consecutive years.In 2018,it experienced negative growth for the first time.In 2018,China’s auto production and sales reached 27.809 and 28.081 million units,respectively,down by 4.2 percent and2.8 percent compared with 2017.At the same time,restrictions on car purchases have led to overcapacity in the auto industry,reducing profits and increasing inventories.According to the development law of foreign auto industry,it took 4-5 years for Japan and South Korea to recover from the first negative growth of auto industry sales,so it is expected that the sales of Chinese auto market will continue to slow down for at least the next 5 years.Due to the influence of the auto industry,the survival pressure of the auto parts industry is also increasing.Germany’s Volkswagen group and China FAW group joint venture engine company,VWED in the platform of the Volkswagen group,supply engine products for automobile enterprise FAW-VW,although there is no sales pressure,but keep in tough market environment are the company’s profitability management needs to focus on the problem.At the same time,the traditional internal combustion engine is also faced with the challenge of new energy engine.Whether the company has the strength to explore and develop new energy field in the future development road is also a major issue that the company’s management needs to face.In the auto market development slowed during this period,the company should seize the opportunity,in addition to continuous innovation in products and technology,also need to strengthen the internal control in company management,construction and improve the company’s internal control system,realize the cost decreasing and benefit increasing for the company,maintain the profitability,improve market competitiveness,and realize the company strategic objectives.This article through to internal control optimization research of VWED,focuses on analyzing company in budget management,procurement management and production management of the three modules of internal control,find out the weak links,and strengthen and optimization control methods,through effective improvement measures,make the company’s internal control be a system,and become a part of the company’s corporate culture.This paper starts from the internal control status of the three modules of budget management,procurement management and production management,from the perspective of the five elements of the COSO internal control,analyzes the internal control in the control environment,risk assessment,control activities,information and communication and internal supervision of the five problems,after deeply analysis the causes of the problem,respectively specific optimization scheme is presented.After that,according to the actual situation of the company,the specific implementation plan and steps of the internal control optimization scheme are given.It also summarizes the safeguards needed by the company to realize the optimization scheme.Internal control is the inevitable requirement of scientific management.With the development of market economy,the competition among companies is gradually intensified,which is a severe challenge to the viability and profitability of companies.By discussing the optimization scheme of internal control of VWED,this paper hopes to improve the management efficiency and management effect of the company and provide support for the company’s operation and development under the severe market environment.In the next five years,the company will not only maintain a leading position in the industry,but also have the strength to explore and expand the field of new energy,adapt to the changes of the automobile industry,and hope to give some reference to other auto parts enterprises. |
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