Case Study On Internal Control Of Procurement In Coating Company MJ

With the country’s increasing attention to energy conservation and environmental protection,especially under the national environmental protection strategies system such as carbon neutrality and carbon peaking,the issued relevant policies are posed to promote the development of the coating industry as well as speed up green and environmental protection.Meanwhile,the promotion of urbanization and the acceleration of "old house transformation" projects have gradually expanded the market scale of building insulation materials.However,market competition is increasingly intensifying,architectural coatings market integration and gathering are inevitable,and market share tends to be concentrated,especially in the epidemic era,raw materials rising.The contraction pressure of other downstream industries such as real estate,has been transmitted to the coating industry.Meanwhile,the internal control of the procurement business is related to the cost,which determines whether the enterprise can resist pressure in the general environment.Therefore,the designment and implement of this control system can help them control costs as well as reduce production and operation risks.The thesis takes MJ Company as a case,analyzing the current situation of each link of procurement business internal control through literature study,on-site investigation,and obtaining relevant IPO audit materials.Firstly,the introduction of MJ and the current status of procurement business activities are discussed,and the key risk points that MJ pays attention to in the procurement business are identified,as well as specific control countermeasures.Secondly,through the on-site inspection and the walk-through test of internal control,the internal control design and implementation of MJ procurement business were quantitatively and qualitatively analyzed according to the risk matrix.Thirdly,based on the above current situation and analysis,it is found that MJ has five problems: the procurement plan is not closely related to the budget,the supplier selection control is not in place,the procurement seal control system is not strictly implemented,the acceptance link lacks an evaluation mechanism,and the timely payment is not able to complete sometimes.Based on the above deficiencies,this thesis puts forward suggestions for improving relevant internal controls.Since this thesis takes MJ Company as a specific case in the context of the epidemic,and the author has only been a company for 3months,there may be a certain degree of arbitrariness and subjectivity in analyzing the issues existing in the internal control of its procurement business.Therefore,whether the conclusions of this thesis are universal will take longer and more enterprises to verify.Finally,the thesis with the procurement business of MJ can be better,which can help MJ escape from the procurement business risks as much as possible.This thesis analyzes the coating enterprises,and enriches the case resources,hoping to bring some inspiration to the current internal control of the procurement business through the in-depth analysis of the case of MJ company’s procurement business.