Study On The Application Of JL Company’s Internal Control In Financial Risk Management

Internal Control is an important foundation to ensure the implementation of national guidelines,policies,and regulations within the enterprise,to ensure the authenticity and accuracy of accounting information,to effectively prevent business risks,and to maintain the security and integrity of property and resources.A sound internal control system can effectively prevent corporate financial risks.However,in recent years of private grain processing enterprises’ business activities,there are still private grain processing enterprises triggered financial risks due to internal control failure putting business in crisis,or even bankruptcy.It threatens the healthy development of the grain industry.Based on this status,it is necessary to enhance financial risk management by strengthening internal control construction of grain processing enterprises.This paper takes JL Company,a private grain processing company,as the research object to identify its problems of internal control implementation based on the current situation of the application of internal control in financial risk management,give the optimization design of internal control process,strengthen the effectiveness of its internal control in financial risk management application,and enhance the financial risk prevention capability.First,the study reviewed the domestic and international academic literatures on internal control,financial risk management and the combination of the two,and identify the research objective of this paper.Second,based on the construction of internal control and the current situation of financial risk in JL Company in the past five years,the study was conducted using in-depth interviews and questionnaires methods,and found that the construction of internal control system in JL Company’s operation activities was not perfect,i.e.,there were deficiencies in the implementation of internal control in the three aspects of capital activity management,comprehensive budget management,and financial reporting management.Further,identify specific problems in the implementation of internal control at JL,such as irregularities in the approval of fund us,imperfect budget adjustment procedures,and lax approval of financial report preparation.Again,in response to the problems in the implementation of internal control,specific control process optimization design is proposed,and key process node control contents are prepared to further control financial risks.This paper not only aims to enhance the financial risk management capability by strengthening the internal control construction of JL company,but also expects to provide reference for other grain processing enterprises to strengthen the internal control implementation in the effective application of financial risk management.