Research On Compliance Management Of Sales Expenses Of Pharmaceutical Enterprises From The Perspective Of Internal Control

The development of medical and health care concerns the country’s livelihood,and the high cost of sales has long been a common phenomenon in the pharmaceutical industry,therefore,in recent years,the country’s compliance with the pharmaceutical market marketing regulations continue to deepen.In terms of the entire industry chain,pharmaceutical manufacturers need to interface with distribution enterprises,hospitals,pharmacies and other types of pharmaceutical terminal institutions and key experts and scholars from various subdivisions,and there are more roles and links in the distribution chain,with more compliance risk points.At the same time,for pharmaceutical manufacturers,sales are an important part of business development and the size of sales directly affects the profit and cash flow of the enterprise,which can easily breed incentives for non-compliant sales.In an environment of deepening healthcare regulation and restructuring in China,pharmaceutical companies are facing internal and external compliance risk factors,and strengthening their own sales compliance management has become an urgent issue to be addressed.As such,the study of pharmaceutical companies’ sales expense compliance is of great significance at the national,industry and company levels.This thesis takes the cost of sales compliance management of pharmaceutical companies as the research object,and uses a combination of literature research,case studies and other research methods to provide an in-depth explanation and analysis of the basic elements,management objectives and the mechanism of the role of cost of sales compliance management and internal control.This article selects a pharmaceutical company with sales compliance risks-K Pharmaceuticals-as a case study,and analyses the problems and deficiencies in K Pharmaceuticals’ sales expense compliance management,taking into account the sales characteristics of pharmaceutical companies and the special characteristics of compliance management.Then,based on the perspective of internal control,the COSO internal control framework is used as an analytical tool to analyse the causes of K Pharmaceutical’s cost of sales compliance risks in conjunction with the five elements of internal control and to suggest countermeasures to form a response strategy for cost of sales compliance management in pharmaceutical companies.Based on theories related to sales expense compliance management and internal control,combined with the case study of K Pharmaceuticals’ compliance management,this thesis draws the following conclusions:(1)It is very important to analyse an enterprise’s sales expense compliance from the perspective of internal control.If an enterprise has a perfect internal control system in the management of sales expense,then the possibility of compliance risks will be greatly reduced.(2)The compliance risks of pharmaceutical enterprises’ sales expenses are mainly caused by weak compliance awareness,lack of a perfect compliance management system and failure to establish a compliance monitoring and feedback mechanism.(3)Pharmaceutical enterprises should pay more attention to the compliance management of sales expenses,and address the problems of compliance management by improving the internal control environment for compliance risks,establishing an effective compliance risk assessment mechanism,strengthening compliance risk control activities,promoting compliance information communication and enhancing the compliance monitoring mechanism.The main research contributions of this thesis are mainly in the following two aspects: Firstly,at the theoretical level,it provides analytical ideas and a framework for compliance management of sales expenses based on the perspective of internal control,which enriches the research on internal control in the area of compliance.Secondly,at the practical level,it raises the attention of pharmaceutical enterprises to the compliance management of selling expenses,enhances their awareness of compliance,and at the same time proposes specific measures for solving the compliance problems of selling expenses in conjunction with the five elements of internal control,so as to help pharmaceutical enterprises improve their compliance management capabilities and achieve compliance operation and long-term development.