Research On Optimization Strategies For Internal Control Of Procurement Business In FARMORE Company

In 1992,the COSO report of the US first proposed the concept of an internal control framework,and in 2004,the ERM framework was released.These two achievements became the cornerstone of internal control theory research,and also an important foundation for establishing internal control theory in China.The core of the accounting internal control guidelines and enterprise internal control guidelines proposed in China is consistent with COSO and ERM.With major issues emerging in the internal management of some large enterprises at home and abroad,the internal control of enterprises has received more attention,but the degree of attention and effectiveness within different enterprises vary.Domestic theoretical research focuses on the overall internal control of enterprises,elaborates on the development and evolution of internal control theory,advocates paying attention to risks,embarks on reality,and completes the construction and effectiveness evaluation of internal control systems.As an important part of a company’s operation and management,procurement business has a significant impact on the quality of an enterprise’s operations.The internal control of procurement business is not only inseparable from the overall internal control of the enterprise,but also has its own characteristics.Domestic research on internal control in procurement business is mainly active in practical sessions,where practitioners analyze internal control issues in procurement business based on actual work experience and propose solutions.This type of research should integrate theory with practice,and propose theoretical and practical plans for internal control of specific procurement operations.FARMORE Company operates a commercial complex with a total asset size of over 80 million RMB by the end of 2022.Its procurement business has a high frequency,complex objects,and diverse forms.Its procurement business has its own system,which is a representative case for studying internal control issues in procurement business.This article takes FARMORE Company as the research object.This article uses the literature-review-method and case-analysis-method to conduct research.After summarizing the theoretical literature on internal control,it analyzes and summarizes the high-frequency and multi-class procurement business of FARMORE Company,and finds the existing problems.Based on the basic theory of internal control and the guidelines for procurement business,Analyze the internal control elements in the entire procurement process of this company,point out the causes of procurement business problems,and propose corresponding optimization strategies.This article describes the current situation of internal control in the procurement business of FARMORE Company,states the problems existing in internal control,analyzes the causes of them in combination with the basic theory of internal control,and proposes optimization strategies one by one.This article believes that the internal control of procurement business in small and medium-sized commercial enterprises is different from the internal control of large enterprise groups.Small and medium-sized enterprises do not have the ability to establish a complete internal control system or supply chain system,but they can still optimize internal control through the following aspects: thinking highly of top-level-design,and forming a management closed-loop from top to bottom through the improvement and authorization of systems;Emphasize risk orientation,fully recognize procurement business risks,and provide early warning of risks throughout the procurement business;Improve technical strength as much as possible,ranging from office software to procurement platform systems,with multidimensional efforts dedicated to achieving system connectivity and avoiding data loss;Break communication barriers,avoid switching work platforms,and dredge information centers from the inside out;Establish mechanisms such as regular highlevel internal audit,regular supplier return visits,and rotation of key positions to urge legal personnel to discipline themselves,implement supervision and inspection from a point to area perspective,and fully reduce procurement risks.