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On the internal controls of the Group's sales company

Author: LiQing From: www.yourpaper.net Posted: 2010-04-04 10:29:16 Read:
[Abstract] the Group sales because of its structure and operating characteristics, resulting in its internal control focus are different from those of other enterprises. The author combines practical work experience and the characteristics of the Group's sales company internal quality control factors affect the Group's sales company, pointed out that the priorities and problems in the implementation of the internal control, internal control of the Group's sales company implementing measures.
[Keywords] Group sales company; internal control; implementing measures

Internal control units in order to improve the efficiency of business management, to ensure the quality of the information is true and reliable, and to protect the safety and integrity of assets to promote laws and regulations to effectively follow the development strategy to be achieved jointly implemented by the unit with governance, management and its employees rights and responsibilities clear, strong checks and balances, the dynamic management process improvement. With the global financial crisis spread to the real economy, the double impact of the economic cycle and the restructuring of state-owned enterprises encountered. The face of the current severe economic situation, as a listed company's financial officers, only to strengthen internal control especially collective sales of the company's internal control with the financial strategy of the enterprise to closely combine, in order to better achieve the purpose of "control", to resist the current severe market situation and promote the sound development of the Group's sales company.

Group sales company internal composition and marketing features

(A) institutions widely distributed, the composition of complex
Hebei Iron and Steel Group, for example, the same kinds of products, set up in the country a prefecture-level units of a number of marketing companies, the product of billions of dollars of monthly sales. However, the staff of the companies of unprecedented complexity, and non-professionals occupy important positions, security and increased risk of the corporate funds and assets.
(B) the financial processes, spatial span, the low efficiency of internal processes
Marketing on their own, the Corporation also involves too broad, can only handle the functions delegated to the provincial Department. Financial processes involved in all aspects of the logistics and marketing, from marketing plans to the cost of plan approval from the funds to be ultimately implemented, assigned to the physical flow from the goods passed to the review archive documents, due to the distance and personnel changes and other reasons, it is sometimes a document from generation to archive often need more than a month to receive. In Reconciliation example, at the provincial level although specialized personnel upon between the Department and the subsidiary responsible for the Reconciliation, but often because of personnel changes fast, the documents could not be verified, leading to handling personnel working overtime the accounts still hard in a timely manner on the Qing.
(C) between customers, logistics dispersed
More retail customers, and logistics personnel less to both receivables billing and custody, in addition to the part of the customer to take delivery of goods in the form of; This multi-client, the cash flow situation of the moment become a bottleneck restricting the development of enterprises, and in have to consider saving on the cost of inputs.
(D) capital requirements, documents reflow slow
The rapid return of capital the Group Sales reproduction needs, but also to ensure the safety of funds means. Logistics requirements quickly place in a period of rapid development of the brand, on the one hand and, on the other hand requires funds quickly reflux, only the flow of capital in order to guarantee the recycling of the corporate capital flow and logistics to achieve preserve and increase the value of the assets. Also, because of the temporal and spatial distance and the degree of attention to the reason in documents, reflux slower.
(E) the audit cost, timeliness requires strong
Due to the widely distributed operating agency, to ensure that no less a problem, from the requirements of timeliness, headquarters and provincial agencies had to set multiple audit institutions to strengthen grassroots company audit. This long-distance long-range raid led to the high cost of the audit. At the same time, the rapid changes in the market and the audit must be timely and efficient, a vulnerability from discovery to qualitative, if not quickly halted, and punishment, are likely to spill over quickly, constitute a major threat to the security funds and assets of the enterprise.

Second, the problems in the internal controls of the Group's sales company

(A) the cost of internal control is too high
Relative to manufacturing companies or other businesses, due to the structure of the Group's sales company over a broad area, long distance verification of the high cost of inputs, many are not so big, no small problem, often due to cost nothing. Absconded with money, for example, an employee in the course of engaging in operations, the proceeds received more than twenty thousand yuan unauthorized occupation of embezzlement, leaving without any formality, such enterprises not in accordance with law. The relevant national laws in accordance with the law of recourse, but the man was gone, find someone to need a lot of human and financial resources, and sometimes may spend thirty thousand cost of to chase twenty thousand arrears, this pyrrhic cost of inputs so that Group sales company bitter unspeakable, and the laws and regulations shall not charge employees margin, even if there is a guarantor, fighting off a lawsuit also endless, involved the energy business, also led to the artificially high cost of internal control.
(B) space is too large, strong liquidity, internal control is not easy to grasp
Group sales by the temporal and spatial distance, coupled with the mobility and logistics documents flow greater vulnerability of any sum of documents or objects Reconciliation, review and verification work will invest a lot of manpower and resources, the occurrence of such logistics documents the loss control the probability often, this pyrrhic internal control work they have to do the Group sales company is different from other internal control difficult.

Third, the impact of Group Sales internal control factors

(A) full overall quality and moral standards
Internal control basic starting point is built in moral in advance on the basis of, and accounting reflect the realization of oversight functions are based on ethical standards for the assumption. For example, a salesman and finance manager colluding approval of reimbursement for the cost of the sum did not occur, accounting personnel can not be verified up from the false documents, because this is the face of hundreds of thousands of documents. Repeatability verify, cost invested unrealistic; separation of incompatible duties is to establish, once the breakthrough in full compliance with the ethical foundation and moral lines, no matter how good the internal control system will exist in name only. Visible, internal control effective premise the full moral standards in line with the basic ethics, moral improvement of the standards depends on the full improve the overall quality, the full overall quality and ethical standards for internal quality control is essential.
(B) Internal control both cost and quality
Internal control inputs only be carried out under the premise of ensure that firms maximize profits, and combined with the actual situation, and is consistent with the fundamental interests of the enterprise. Can not they talk about internal control costs, do not speak the internal quality control; can not talk about internal quality not paying attention to internal control costs. Optimal cost of internal control is to achieve quality under the premise of the the estimated internal control target to maximize their profits. Internal control of the strategic goals and other goals are to expand around to maximize their profits, internal control, no matter how well could not leave the fundamental goal of economic efficiency of enterprises.
(C) the internal control system design rigor
Internal control system design rigor, but also affect the quality of internal controls important factors. Internal control system design must first legal, which is the internal control fundamental guarantee of quality of the merits; same time, it is necessary to fully do not stay dead, covering the human, financial and material full range of management, but can not speak the focus, without taking into account inputs to ensure that there is no significant defects premise a smaller internal control the cost of inputs, to avoid wasted on institutional personnel, various internal control measures to ensure a sound and effective. Viability of the internal control system designed to be first, this first actually choose the most economical internal control input costs to achieve the optimization of internal control, which provide an institutional guarantee for the completion of the internal control objectives, determining the quality of internal controls important aspect.

Group sales company internal control focus

(A) the design of the internal control system
The design of the system is the internal control of the Group's sales company to save costs and to ensure the full and effective internal control keys the top priority. The internal control system must be designed to determine the reasonableness, legality, comprehensiveness, importance, effectiveness, checks and balances, adaptability, cost-effectiveness principle. The the reasonableness principle requires that the internal control system must conform to the actual situation of the company; principle of legality requires internal controls can not be above take precedence over national laws and regulations; principle of comprehensiveness coverage of human, financial, and all-round management of material, to prevent gaps and loopholes; important principle of important business, high-risk areas or link to take more stringent control measures to ensure that there is no significant deficiencies; validity stressed to regularly check the implementation of improvements and the discovery of the problem in a timely manner, the internal control objectives provide reasonable assurance. Different departments, must be done between the different positions accountability and checks and balances between mutual supervision and mutual restraint; should also be in accordance with the operational characteristics of the Group's sales company wide, such as logistics, document flow and more determined to adapt to the characteristics of the internal control system. Of course, the cost effectiveness is always an important factor to consider in the design of the system, to maintain the proper ratio between the internal control costs and the resulting economic benefits.
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