Research On Longhui New Hope Agricultural And Animal Husbandry Company’s Improvement Of Inventory Internal Control

Pork is one of the important foods for urban and rural residents.The overall scale of the industry is as high as one trillion yuan.With the growth of our living standards,urban and rural residents have an increasing demand for pork products.It is one of the core pillar industries of our country’s economy.Therefore,the pig breeding industry occupies an extremely important position in our country agricultural production and people’s livelihood.The internal control of inventory is an important part of the development of an enterprise,and the quality of internal control will directly affect the overall operation and capital efficiency of the enterprise.Agricultural and animal husbandry enterprises have a high proportion of inventory funds and a wide range of distribution.Most of the inventory are expendable biological assets.Their growth process takes a long time and are highly influenced by external environment.The above traits lead to uncertainties in their future value.It also cause great trouble for the internal control of the stocks of agricultural and animal husbandry enterprises.Secondly,most of agricultural and animal husbandry enterprises are small-scale,poor in strength and inadequate in system construction,which hinder the rapid development of agriculture.This article takes Longhui New Hope Agriculture and Animal Husbandry Company as the research object.Due to the gradual expansion of business and cooperation scope and frequent adjustment of personnel organization structure,this company is facing many risks in the domestic and foreign pig breeding market,and the internal inventory problem hinder the further development of the company.This article is based on the theory of internal contro theory,principal-agent theory and risk management theory.Then fully understanding the basic situation of Longhui New Hope Agriculture and Animal Husbandry Company’s inventory,on-site investigations of all aspects of its internal control have found the following problems: Inventory procurement and grazing department positions are not sound,The scope of inventory is decentralized so that the management is poor,the inventory demand budget is inaccurate,and serious formalization inventory.Further investigation and analysis revealed that the main reasons for the problems are the unsound internal control environment,unsound communication between information across departments and companies,defects in control activities,inadequate control of key risk points in the feeding cycle,and insufficient internal supervision of inventory.The following improvement suggestions are put forward for the reasons for the problems: create a good internal control environment,establish good information communication channels,optimize the control of control activities,strengthen the control of key risk points in the breeding cycle,and strengthen the strength and system of internal control and supervision.In recent years,there are many pig breeding companies in agricultural and animal husbandry enterprises,and the development momentum is good.It’s hoped that this paper can improve Longhui’s internal inventory control and give inspiration to similar firms.