Research On Internal Control Environment Of Chang Xing Auto Parts Co.Ltd.

China’s auto parts industry emerged in the 1950 s.The initial technical level is relatively weak,the research and development of technology depends on the OEMS.In recent years,China’s social and economic development is rapid,high quality,national income level and quality of life gradually improved,with the progress of the automobile industry,auto parts industry is also developing gradually.After years of development,auto parts companies have gradually realized structural optimization and product upgrading.In addition to some large component companies,there are many small-scale private component companies that lack a single product and core technology and struggle in the low-end market.Private auto parts enterprises need to improve the internal control environment,maximize the effectiveness of various internal control elements,survive in the fierce market competition,in order to develop their own management level and risk countermeasures.This paper takes Chang Xing Auto Parts Co.Ltd.as the investigation object,starts from the production,operation status and operation level of Chang Xing Company,analyze the problems in the process of internal control and operation.As a private manufacturing enterprise,Chang Xing Company investigated and analyzed the production,operation and governance structure of the company with its continuous development and asset expansion,and found many problems in the internal control environment,such as duplication of duties and responsibilities,and lax work of employees.There are also many problems in the operation and management of enterprises.For example,business processes do not operate according to the rules,business processes are repetitive and inefficient.Lack of awareness of risk prevention and management,and management systems related to internal supervision have not been established.Based on the reference and the analysis and research of the related theory,combined with our country folk auto parts industry development situation and characteristics of the further study of Chang Xing Company,of restricting the development of the auto parts company found that the main reasons including:Organization structure design flaws system set to play an important function,important post responsibility is not clear,the efficiency is reduced.The formulation and implementation of development strategy is not applicable to the company’s development stage.Human resource policies do not improve employees’ enthusiasm for work.In addition,to solve these problems,this paper put forward feasible and effective suggestions to help build an excellent internal control environment and improve the management level.This paper aiming at the existing problem of Chang Xing Company put forward the optimization strategy: Suggestions from the perspective of company development strategy,according to the development of the company make the development strategy and management,and dynamic adjustment of development strategy.In terms of organizational structure,Chang Xing Company should build the organizational structure according to the company’s rules and regulations,refine the institutional setting,and redefine the job responsibilities.In terms of personnel policy,Chang Xing Company should strengthen the evaluation of staff moral quality,strengthen staff training,establish regular job rotation system to improve the salary evaluation system and so on.