Research On Optimization Of Internal Control Of ZH Company Based On Cost-benefit Principle

With the further deepening of the reform,China’s economic environment has big changes,and the competition between enterprises is becoming more and more fierce.Medium-sized enterprises occupy an important position in the current economic system,and even become the backbone of the national economic development.In recent years,large enterprises with advanced technology and management concept to obtain a greater competitive advantage,which makes the development of medium-sized enterprises difficult.There are many factors that cause this situation,among which,the neglect of internal control by medium-sized enterprises is one of the main factors.Internal control is a series of management measures and procedures taken to ensure the normal operation of economic activities.It plays a very important role in the business activities of enterprises.Due to insufficient internal control,medium-sized enterprises have caused a series of problems,such as high production cost,low work efficiency of workers,poor risk resistance,etc.It is urgent to optimize the internal control system of medium-sized enterprises.However,due to medium-sized enterprises and small volume,most of the perfect internal control systems are applicable to large enterprises,with high cost and small benefit for medium enterprises,which have low requirements for internal control and low reference value for medium-sized enterprises,so the existing internal control mode is not suitable for mechanically copying.How to optimize the current internal control scheme of medium-sized enterprises needs further discussion.This paper focuses on ZH Company,a medium-sized enterprise in the manufacturing industry.First of all,the existing internal control system of the enterprise was investigated,and the internal control status of the company was described from five dimensions: internal environment,risk assessment,control activities,information and communication,and internal supervision.Then use control matrix method to establish internal control evaluation model,to evaluate the company’s internal control situation,combined with the present situation of ZH company internal control and internal control evaluation results are analyzed,find out the problems existing in the enterprise internal control,including system establishment,inventory management,project risk response,sales management and performance management.Finally,by reading a large number of literature and reference cases,combined with the actual situation to find out the most suitable solution.At present,the listed companies and large companies due to the policy requirements have introduced the internal control,small micro enterprises for internal control is still in its infancy,and medium-sized enterprises between,both need internal control to save operating costs,and need to consider the cost of the internal control,so in terms of internal control has not as.Combined with the above situation,this paper is committed to develop a set of utility within the acceptable cost of the largest internal control system,this paper proposed the problem solving measures considering the cost factors and realistic factors,for medium-sized enterprises to explore effective internal control system,hope to solve the problem of the enterprise internal control,to the same type of enterprise,promote the implementation of internal control in medium-sized enterprises in our country.