Research On Internal Control Optimization Of Private Small And Medium-sized Enterprises

Over the past 40 years of reform and opening up,our country’s private small and medium-sized enterprises have developed rapidly,and the private economy has become a very important part of China’s economy.It is an indispensable part in the past,present and future development.With the rapid development of the globalized market economy,the competition among enterprises is no longer only the competition between hardware factors such as product and service quality,but also includes the competition of talents,management models and culture.In order to be invincible in the fierce market competition,scientific and efficient management methods must be adopted to improve the management level of enterprises,improve the ability of enterprises to resist risks and safeguard the interests of the public.Through in-depth analysis of our country’s Sanlu milk powder incident,Giant Group and Kangmei Pharmaceutical’s financial fraud and other incidents,the reasons are inextricably linked with internal control.Due to the lack of internal control construction in our country’s private enterprises,many enterprises have problems such as weak anti-risk ability and lack of standardized management,which also causes many private enterprises to have a short lifespan.After an enterprise develops to a certain stage,the allocation of its human resources,the management and control of funds and the establishment of institutions no longer meet the needs of enterprise development.Therefore,establishing and improving the internal control of the enterprise is an inevitable requirement for its development.Since 2008,the Chinese government has successively issued policies such as "Basic Standard for Enterprise Internal Control" and "Standard for Internal Control of Small Enterprises(Trial)",which provide a basis and reference for the construction of the internal control system of Chinese enterprises,and are of great significance to the risk prevention of Chinese enterprises.Guiding significance.This paper takes CC company as an example,takes the five elements of internal control as the framework and theoretical basis,combines the characteristics of private enterprises,and comprehensively uses literature method,interview method,case analysis method and other methods to study the internal control optimization of CC company.For CC company’s internal control issues,this paper starts to conduct indepth research and analysis from five elements: internal environment,risk assessment,control activities,information and communication,and internal supervision.Through interviews with CC company employees and combined with the obtained data,it is found that CC company’s internal system and environmental management are poor,internal system management is weak or fails to implement,internal risk assessment and processing capabilities are poor,internal information communication is not perfect,and internal There is also a lack of effective monitoring.The root cause is that CC enterprises adopt family-style operation,enterprise managers ignore internal control,unsound management structure,lack of awareness of risk prevention,and poor internal information exchange.This paper proposes targeted optimization measures for the problems found,that is,to create a good internal control environment,to make control activities tend to be perfect and standardized,to implement a comprehensive risk management system,to ensure the smooth flow of information and communication,and to gradually establish and strengthen internal supervision.It is expected that through the research of this paper,the internal control of CC company will be optimized,the internal control of the company will be improved,the operating performance of the company will be improved,and the economic benefit of the company will be improved.At the same time,this paper also hopes to have some enlightenment for future scholars’ research on our country’s private small and mediumsized enterprises.