Case Study On Internal Control Of Purchasing And Sales Business Of M Trading Company

With the development and progress of economy,the advancement of vanadium-titanium production technology and the continuous expansion of the application field of vanadium and titanium products,the trade of vanadium and titanium has gradually developed into an open period.However,affected by the outbreak of the epidemic,the global economy has declined,and the infrastructure and real estate industries have also been greatly impacted,further affecting the production and trade of vanadium and titanium resources,competition in the vanadium-titanium non-ferrous metal industry trade has become increasingly fierce.Since the establishment of M Trading Company in 2018,the sales situation has been thriving.Relying on the core technology support of the parent company and the advantages of raw material processing,customers of M Trading Company are developing at home and abroad,however,its internal control,especially the internal control of the purchase and sale business,is not mature.Enterprises are facing great challenges in scientific decision making,legal management,effective supervision and risk prevention.Whether the internal control can support business development plays a decisive role in the healthy development of enterprises.This paper uses the case analysis method and literature research method to analyze the current trading process of M Trading Company.Finding problems and reasons in the internal control of purchase and sales links,M trading company has problems in approval system of purchase,access standards for suppliers,division of responsibilities,acceptance of goods,credit management for merchants,accounts receivable management,and pricing mechanism,and then establish relevant process optimization diagrams or risk control matrix diagrams to help enterprises carry out better risk prevention measures.It is believed that in the future M trading company should strengthen the formation of employees’ internal control risk awareness,improve the company’s internal control systems,and introduce the information system,and implement supervision at all levels within the company,thus forming a strong guarantee for the optimization of the internal control process of M Trading Company,and helping M Company gain a place in the market competition.