Research On Internal Control Of Accounts Receivable Business Of Company C

In today’s competitive market economy,credit sale as an effective means to bring sales income for enterprises has been widely used.However,credit sale at the same time also means that product payments can not be synchronized settlement.Enterprises occupy their own capital to expand sales,will inevitably cause financial constraints,without sufficient and smooth flow of cash enterprises are difficult to continue to survive.The recovery of payment is an important link of business operation,but also a high risk area.Therefore,if you want to dance the double-edged sword of credit sales,enterprises should improve the level of internal control of accounts receivable,improve the internal control system,correctly identify risks,effectively control risks.The establishment of feasible internal control system of accounts receivable provides an effective way for enterprises to improve management level,effectively identify,control and prevent bad debt risk,improve management efficiency and promote the realization of long-term and short-term goals.Company C,which belongs to China Electric Power Construction,is one of the first class manufacturers of electric equipment.Based on the COSO framework,Basic Norms of Enterprise Internal Control and Guide No.9,From the "five elements," Company C accounts receivable internal control status of systematic evaluation,analysis of the existing problems,and put forward targeted optimization recommendations.In internal environment,it is found that Company C has low awareness of risk prevention and imperfect internal control system of accounts receivable.It is suggested that Company C should strengthen the internal control system of accounts receivable management.In the aspect of risk assessment,this study found that Company C has not established an effective risk management mechanism,it can not fully penetrate the risk management system and management process.It is suggested that Company C establish an effective early warning system for the risk of accounts receivable.In the aspect of control activities,the study found that Company C has no rules for customer credit management,contract performance and payment collection implementation defects and other problems.It is suggested that Company C establish a perfect customer credit management environment,improve the contract control process and the accounts receivable collection process.In the aspect of information and communication,the study found that Company C has some problems,such as lag in the construction of information control process,difference in the information obtained by the relevant personnel in the collection business.It is suggested that Company C take ERP management system as the carrier to realize the smooth delivery and communication of information in each key link of internal and external.In the aspect of internal supervision,the study found that Company C has problems such as lack of prior supervision and lack of validity of self-evaluation.It is suggested that Company C should strengthen the process control and follow-up of sales and receipts,and exert the supervisory effect of internal audit to the greatest extent.This paper analyzes the problems existing in the internal control of Company C’s accounts receivable business,in order to optimize the system of internal control.Improve the control level of Company C accounts receivable,and for the same industry in the accounts receivable business internal control continuous improvement to provide a certain reference and expansion cases.