Specific measures to improve internal control and management of enterprises
I. Separation of incompatible positions
This measure is applicable to many fields, from the decentralization at the national level to the three-level mechanism in the modern corporate governance structure: shareholders' meeting, board of directors, board of supervisors and managers, and then to the specific post setting, such as cashier taking care of money regardless of accounts and accounting taking care of accounts regardless of money.
We should take this into account when designing the internal control process of enterprises, otherwise there will be great loopholes. Generally speaking, grasp these three principles:
1, authorization and execution, execution and audit, audit and record, storage and record separation;
2. It is best to separate money, things and accounts, not to be managed by one person, but to form mutual containment;
3. A business usually includes planning, auditing, execution, recording and review. It is also best not to be responsible for all five steps by one person.
Two. Approval authorization
In fact, this is mainly based on the internal control goal of improving operational efficiency.
Because the enterprise is large, it is difficult for the company leaders to do it themselves. According to the modern management theory, it is better for one person to directly manage no more than seven people, so this will inevitably involve authorization. In the design of internal control process, we must pay attention to the authorization must be based on the process or system, that is, there are processes and systems that will control and supervise the implementation of this authorization, otherwise it may be "out of control" after authorization. In addition, temporary authorization should be considered.
Third, budget control.
Comprehensive budget management is an advanced modern management concept. In fact, it can well reflect the importance of comprehensive budget management.
Fourth, business analysis.
A company will produce a large amount of data in the course of its operation, which are all logically related. We can use these data for business analysis and calculate various indicators, such as input-output analysis, structure analysis and trend analysis. , and find the problems in the process of business operation through index analysis.
Verb (abbreviation of verb) process form control
When constructing the internal control system, one of the ideas we often talk about is "institutionalization of management, systematization of system, formalization of process and informalization of form". What do you mean? In fact, it is to solidify and bear the control points of internal control in the form of process.
An enterprise's form is chaotic, so its financial accounts are definitely not smooth, because it is impossible to get the data needed for finance from the form, and the financial accounts are chaotic, so the financial data is definitely chaotic, and the financial data is chaotic, and the business data of the enterprise will also be chaotic.
Sixth, performance appraisal.
What do you want, and then evaluate what. Only systems, processes and forms, without assessment, can do nothing. Please use performance evaluation to ensure that they are effectively implemented.
Seven, body control
You can't just check the data and read the report in the office. You have to go to the scene to check the physical situation and check with the accounts.
Eight, the establishment of fraud prevention mechanism
It is necessary to inform in advance that there is a system in the process and an inspection afterwards. Through the anti-fraud mechanism, the closed management of internal control mechanism is formed, and the system of reporting and complaining is established and improved.
What does internal control mean?
Enterprise internal control refers to the process implemented by the board of directors, the board of supervisors, the managers and all employees to achieve the control objectives. The essence of enterprise internal control is a process and a means to achieve an end, not the end itself. The purpose of enterprise internal control is to provide reasonable guarantee for enterprises.
Why should enterprises do internal control?
The reason why enterprises should do internal control is that internal control can ensure the normal, orderly and legal operation of enterprise management activities, and take a series of activities to effectively supervise finance, people, assets and workflow.
Enterprise internal control requires to ensure the accuracy, authenticity, effectiveness and timeliness of enterprise assets and financial information; Ensure effective control of employees, workflow and logistics; Establish an effective supervision mechanism for business activities of enterprises.