Research On Internal Control Of Procurement Business Of W Public Transport Group

With the steady growth of people’s living standards and rising demand for public transportation,there’s a higher expectation for the public transportation providers and their services.In the daily management of public transport enterprises,the procurement and supply management plays an important role in improving the service capabilities.Additionally,the procurement business has a significant impact on the operating income and of enterprise’s operation management.Hence,the internal control of procurement business is undoubtedly a core link in enterprise’s operations.A healthy internal procurement control can not only ensure the quality of purchased materials and reduce product costs,but also prevent the collusion of procurement personnel and avoid fraud risks,thereby ensuring a smooth company daily operation.Like most state-owned enterprises,W Public Transport Group has established a system of internal controls.However,after an initial research,the company’s control of operating risks and management efficiency is under expectations.This paper conducts a case study of W company with access to internal materials and on-site visits and investigates the basic and procurement business-related internal control system and its implementation.Then,based on the interviews with employees and third-party personnel,combined with grounded theory and coding analysis,the paper summarizes the headwind and tailwind of the implementation of the internal control of W Company’s procurement business.Among them,the tailwind includes the awareness of and attentions to internal control management the establishment of an evaluation system and comprehensive informatization,and the business management implementation,audit supervision and human resources management;headwinds,include poor employee attitudes;the complexity of internal control procedures,internal control and supply conflicts,and inertial management models and government influence.Finally,the paper integrates,researches and analyzes the influencing factors,and concludes that the optimization measurements include increasing attention,creating corporate culture,establishing an evaluation system,building a digital procurement platform,and auditing supervision and management,strengthen procurement human resources management,change employee attitudes,correct selfishness,flexibly formulate internal control procedures,establish comprehensive internal control,solve supply contradictions,break inertial innovation management models,and balance government influence and independent decision-making,a total of 13 countermeasures.In addition,a flow chart of the whole process of centralized procurement has been created,and the flow chart of acceptance and storage and supplier management flow chart have been updated and optimized.This paper has positive significance for the procurement business management and procurement internal control implementation of W Public Transport Group,and provides a reference for the internal control of the procurement business of the urban public transport industry and even the same type of state-owned enterprises in the country.