Internal Control And Optimization Of Equipment Manufacturing Enterprise

Internal control is an important guarantee for enterprises to prevent risks and achieve sustainable development.The "Basic Standards for Enterprise Internal Control" was issued in 2008,and the "Supporting Guidelines for Enterprise Internal Control" was issued in 2010,and then in 2012,the listed companies on the main board promoted the implementation of internal control.Since then the Internal control has entered a new stage of development and it has been more than ten years so far.The internal control construction of enterprises will generally go through a process of development and improvement.Equipment manufacturing enterprises have their own characteristics,and it is very important to ensure stable and continuous development by internal control.Therefore,this study selects S company-a typical enterprise in the equipment manufacturing industry as the research object,and explores how this company builds and optimizes the internal control system.This study mainly adopts the methods of literature research and case study.Firsly,it studies the theory of internal control and the research results at home and abroad.On the basis of absorbing the research results on internal control,this paper analyzes the characteristics of internal control of equipment manufacturing enterprises,and provides industry background for this case.Secondly,this paper takes S company as the research object and studies its internal control system.S company started the construction of internal control system in 2012.After years of development,it has established internal control system well including internal environment,risk assessment,control activities,information and communication,and internal supervision.The employees generally have the aware of internal control as well.Internal control has played an important role in preventing risks.However,internal control must be integrated into specific business processes to be truly effective.This study then analyzes the internal control measures of each link of the S company's procurement cycle and production cycle.The procurement cycle mainly includes making procurement plans,submiting purchase requests,selecting suppliers,seting prices,signing contracts,checking upon delivery and paying the money.S company has adopted internal control measures,but there are still some weaknesses.For example,there are still some unplanned purchases.Pricing methods are arbitrary.The checking process is manually triggered,and sometimes the quality inspector will miss inspections.The production cycle mainly includes making production plans,deliverying materials,producing,inspecting and calculating costs.Also the internal control needs to be optimized in some areas.The production plan is not very accurate.The actual numbers of material distribution are not actually recorded.The productions are not inspected well enough.Thirdly,this study discusses the internal control optimization measures of S company.In terms of procurement cycle,first,the authorization approval process for unplanned purchases has been added.Sceond,a material procurement attribute classification model is established to clarify the procurement pricing principles and the SRM system is used to standardize the procurement pricing process,and the procurement pricing approval mechanism is established.Third,the IT system is used to automatically triggers the delivery inspection process to avoid missed inspections caused by manual inspection.In terms of production cycle,first,establish a rolling production scheduling mechanism,clarify the basis for preparing the production plan,establish a production plan review mechanism,establish a plan adjustment and feedback mechanism.Second,ensure the consistent receipt and delivery records of materials,and establish the return of remaining materials library process.Third,three control measures of pre-prevention and post-inspection are combined,including the preventive inspection work in the preparation stage,operating according to the specifications,and the inspection of the manufacturing process.As a results,the internal control of S company has achieved further improvement effects.Finally,through this case study we can draw a conclusion,that is although the S company has established a relatively thorough internal control system,in the actual operation process,there are still many internal control problems.The construction of enterprise internal control is a process of continuous development and improvement.Therefore,it is necessary to optimize where there are weaknesses of internal control in time.This research is based on the specific business of S company.As a typical equipment manufacturing company,it has certain significance for companies in the same industry,but the company must integrate its own actual situation when implementing internal control.It needs to be expanded in the follow-up study to better explore the internal control construction and further optimization,so that the research will have more meaning.