Internal accounting control of SME related issues of

Abstract: With the rapid development of market economy, SMEs play in national Economic development an increasingly important role of SMEs in the internal accounting control more and more - by the public interest. Article first based on the unique small and medium enterprises characteristics, summarizes the characteristics of SMEs and the internal accounting control requirements, and analysis of the small and medium internal accounting control problems. From the perspective of the life cycle of small and medium enterprises, SMEs in China come to improve the internal accounting control measures.

Keywords: SMEs, internal control, accounting

With the development of national economy, supporting small and medium enterprises have gradually become China's Economic growth, promoting market prosperity, more jobs and an important force in maintaining social stability. In the rapid Economic development, China's accounting fraud there is getting worse. To promote the rapid development of China's national economy. enhance the credibility of SMEs. of internal accounting controls and medium enterprises, the problem has some practical significance.


First, the characteristics of SMEs in the internal accounting controls and needs analysis

(A) of the internal accounting control of the characteristics of SMEs
The large number of SMEs in China, has its own unique characteristics, whereby the internal accounting control is also small and medium enterprises have unique characteristics.

1, will determine the attitude of business owners small and medium enterprises by the internal accounting control emphasis .2, SMEs aim of internal accounting controls is to ensure the reliability of accounting information and the authenticity and integrity of assets .3, SMEs within accounting control as the main way to cross-examination. a small number of SME personnel, the use of cross-examination method can cross-check each other with a small number of individuals who work to achieve the objective of preventing errors and fraud.


(B) the internal accounting control system of SME needs of
As we all know, a sound internal accounting control can improve the return on investment companies so that more preservation and appreciation of assets. So. For small and medium defects, the owner will pay more attention to internal accounting controls, internal accounting controls has urgent needs reflected in two aspects:
1 SMEs lack a scientific and systematic management system, coupled with relatively low quality of the staff, there is also a need to have to ensure system security, safeguard the normal operation of production and management and continue to improve enterprise management mechanism. The internal accounting controls can play this role.

2 In contrast, small and medium enterprises to create a highly efficient operation of internal accounting controls has a greater potential than others motives. Most of our ownership and management of SMEs did not reach the stage of separation, the operator is owner, operator who can stand the perspective of the owner in order to achieve the best interests of the owner as a stArting point to improve the enterprise's internal accounting control system, so with the greatest desire and motivation.


Second, SMEs internal accounting control problems

At present, many small and medium enterprises as a result of weak accounting control the deteriorating business conditions, the effect of internal accounting controls is not ideal. A problem mainly in the following areas:

(A) managers have sufficient understanding of internal accounting controls
1, the management saw no need to establish internal accounting control. SMEs relatively simple organizational structure, its management and ownership highly concentrated, the instruction can be quickly implemented, and therefore, managers often ignore the internal accounting systems .2, some managers of internal accounting controls there was a misunderstanding. They think that the internal cost control, accounting control, internal security, control of assets, leading to incomplete corporate accounting control: a considerable pArt of the management accounting control as is the pile of papers, manuals and system, the specific problems encountered, in order to emphasize flexibility in the ground instead of the required procedures, big and small leaders have the final say, some managers ignore the existence of accounting laws and regulations, there are chapters that do not follow strictly enforced, so that the accounting control loss of rigidity and seriousness, and some managers even for personal gain or the collective interests of the unscrupulous, fraud, tampering with accounts.


(B) the existing system of internal accounting control system is imperfect
1 in business management, the majority of SMEs are still accustomed to even meet with the traditional management methods, there is no establishment of prevention and self-restraint mechanism, emphasis on pre-post control of the neglect of prevention and control. In practice, usually be a disciplinary try to plug the breach occurred or to be punished, leading to higher internal costs, have little effect, so that ineffective .2 accounting control, control of assets, some small and medium enterprises to focus only on money, property and other tangible assets, management control, to the neglect of on the quality of personnel, information and other intangible assets control, so that the accounting control can not play a full role in control of .3, the inspection, assessment and incentive efforts, there is no set up corresponding inspection, examination and implementation of internal accounting control system of effective institutions , thus weakening the implementation of internal accounting control system staff of the consciousness and awareness.


(C) organizational structure and internal management responsibilities unreasonable
SMEs in the organization setting, the vertical relationship between the more emphasis on the rights and obligations, and for horizontal coordination and cooperation between the lack of sufficient attention has led to the same level between the various depArtments lack the necessary communication. For internal accounting bodies, a context, some enterprises do not set the accounting bodies, the accountant and cashier work by the same individual, or all of the enterprise entrusted to the accounting firms accounting agent, on the other hand, some enterprises have even set up accounting body, but levels is unclear. personal responsibility is not clear, are not implemented, the lack of effective internal management systems and accounting supervision system. accountancy bodies set unreasonable, inappropriate distribution of responsibilities within the administration, making the accounting management of enterprise management can not really play should some effect.


(D) lack of effective oversight mechanisms
For external monitoring, while including the Government of China has formed a social supervision, including supervision and monitoring system outside the enterprise, but because of the special nature of small and medium enterprises, often the system of supervision of these huge effect on the unsatisfactory supervision of small and medium enterprises. For Internal oversight. SMEs more consideration to such factors as cost, very few set up an internal audit depArtment. With the development of SMEs, even if some enterprises to set up an internal audit agency, but lack of attention and support, and the independence of the poor and, therefore, can not fully play its due functions. coupled with the low quality auditor business does not meet the needs of their work, resulting in the internal supervision. all regulatory useless. reposted elsewhere in the Research Papers Download http:// www.hi138.com Third, improve the internal accounting control of SME Measures

The following internal accounting controls for SMEs will be the common problems, from the corporate life cycle that is entrepreneurial, growth, objectives of the three stages of maturity, combined with internal accounting controls and the COSO report of normative, analytical strategies to address these issues.


(A) small and medium size of the internal accounting control Measures
An internal accounting control
Business owners in the establishment of an effective control environment plays a key role, we must enhance the owner's understanding of internal accounting controls. The vast majority of SMEs there is no separation of ownership and management, which for an efficient operation of internal accounting Kong Zhi, it is a relatively large obstacles. Therefore, it is necessary to start the business of, and improving internal accounting control of the owner of the establishment of the importance and awareness of the need, as this will encourage them to establish and improve effective internal accounting control, to accounting controls and business development.

2 Risk assessment
SMEs in the business of the management system more flexible and less management layers, faster decision-making to get first-hand information, so business owners should be mainly from the business, assets, results of the two angles to determine the risks, statistics, analysis , the assessment methods focus on qualitative analysis methods. qualitative analysis control of the business through content classification, and control content selected for further subdivision, the use of evaluation experts (such as the internal auditor) to understand and judge to determine the control nature of the risks, and targeted to address the appropriate risks.

3 control activities
SMEs in the start of the control activities, the first implementation of account, money, material charge principle. As small and medium business of fewer personnel and more likely to have jobs and other issues is unclear, therefore, do arrival, money and materials to be charge, each doing its job, to reduce asset loss. Second, we must implement and property control. property near the security control including restrictions, asset protection and regular inventory. Growth of SMEs on the one hand should be strictly controlled access to materials on the property. limitation has nothing to do people close to the assets, prevent the occurrence of loss of assets, direct contact, on the other hand should be Periodic inventory system for asset-building. At the same time records should be protected against a variety of business documents take proper care to avoid damage to records.

4 Monitoring activities
SMEs in the business of, due to limited capital, small scale, organizational structure and simple, companies do not establish a special oversight body, so. Enterprises should strengthen the business owner's direct control, focusing on strengthening the supervision of the accounting department. Meanwhile should be from the posts and quota, clear job responsibilities, improve working within the containment system.


(B) SME growth stage of the internal accounting control measures
1 and gradually establish and improve the system of internal accounting control
SMEs in the growth stage, the enterprise managers should go deep into every corner of the enterprise to understand the actual situation of enterprises, according to local conditions and gradually establish a sound internal accounting control system. And concerned about the environment changes in real time, when companies change the Economic situation. Or When a change in national accounting system, we must promptly amend the internal accounting control system to adapt the changing environment, more effective implementation.

2 to establish good corporate governance structure
SMEs in the growth stage, they should set up a scientific meeting of shareholders, board of directors, supervisors and operational management of mutual supervision among the various levels of governance constraints, and explicitly in the articles of association of the level of job responsibilities. Enterprises must strengthen the Board of Directors corporate governance structure in the dominant position, highlighting its central role. Second, we must implement independent director system. Through the Board of Directors of the internal organs of the appropriate external technology, the introduction of external, independent directors, to a certain period of internal staff supervision and restraint, the maximum least maintain the interests of all shareholders. Meanwhile, enterprises should strengthen the role of supervision and control the board of supervisors. Board of Supervisors in the implementation of financial supervision, we must comply with legal requirements on businesses as well as board, management, monitoring the performance of duties.

3 strict control of implementation and improve the accounting system
Control of the accounting system in the process, enterprises should in two ways: one for positions and personnel control. Enterprises should be in accordance with the principle of separation of incompatible duties to set accounting positions. For control of accounting records, on the other hand, with the information age arrival, the enterprise should pay attention to a computerized accounting system to establish and improve internal controls. enterprises to adopt computerization, the use of a computer to check the accounting business, second to build an advanced information system of accounting internal controls, with modern methods of accounting data and analyzed and the third is to design the application software accounting business processing program, to restrict, prevent the risk control and supervision functions into one. so that the operator must be in accordance with the duties and powers and constraints of the operating procedures to enter the system. dealing with accounting.

4 level to establish independent monitoring
Growing small and medium enterprises to create three separate control level. One at the firm line "for sales" into the entire process of mutual restraint, mutual restraint system, the establishment of the monitoring to prevent the main line of defense. The officer engaged in the business When business processes must be clear authority and responsibilities, the general business or directly with the business, have to go through the review, the important business of the whole process of prohibiting a person independently. The second is the establishment of post-supervision, that is routine in the accounting department on the basis of accounting to its various positions, the business daily and periodic verification, the "blocking" the monitoring of the main line of defense. Third, the establishment of internal audit departments of the various positions, departments, agencies , the full implementation of supervision and feedback on the business of the third control line of defense. internal audit department independent of other departments and business activities, internal accounting control system and the implementation of rigorous inspection, feedback, play the role of internal audit.


(C) SME maturity of internal accounting control measures
A re-designed the organizational structure, improve the corporate governance structure
SMEs in the mature stage, with the expansion of business scale, first of all, the design of the organizational structure of enterprises directly affects the effectiveness of internal control, and therefore need to redesign the organizational structure, the enterprise should be based on the characteristics of their own management, size, management philosophy, business strategy and comprehensive analysis of external environmental factors. In the same time clear duties, improve integration, the organization of the entire business system of checks and balances under the premise of mutual coordination and efficient operation. Secondly, in the re-design reasonable organizational structure, we should further improve the corporate governance structure, that is, to be family members can not serve as a key management positions, chairman and general manager of divided, decision-making, policy implementation and monitoring and auditing personnel who complete separation layer. In short, To improve internal accounting controls provide a more favorable system environment.

2 establish a complete risk assessment agencies
SMEs in the maturity of risk management should be considered as an important part of business management, among the daily operations of the enterprise through the application. In particular, enterprises should set up the Ministry of Finance or the Audit Department and other specialized risk management department or with the corresponding risk management personnel to develop and implement the identification, measurement, monitoring and risk management systems, procedures and methods to ensure that risk management and business goals. to perform the risk management function of the specialized departments of the enterprise should be every business, every department Each part of the risk analysis and evaluation, and gradually establish a corporate risk database. where necessary. You can also consult with external agencies to conduct a comprehensive corporate risk assessment and clean-up. Meanwhile, the entire staff should be actively involved, the risk awareness of corporate culture implantation.

3 to further strengthen the internal audit controls
Mature SMEs in the daily work on the one hand to supervise, review the overall effectiveness of internal control and the main risks, on the other hand should also strengthen the internal audit oversight. More effective way is to set up independent internal audit, the audit agency scope of the audit should be gradually moved from the auditing, equipment procurement audit turned to the management audit should also include inspection, evaluation of the effectiveness of internal accounting control system and internal organizational structure of the implementation of the efficiency of the development functions of the organization to top management on business recommendations and reports. At the same time, it can draw an external monitoring body to monitor the enterprise. With the cause of the progressive development of independent audit and the CPA profession was gradually standardized, using the conclusions of the independent audit services in corporate management has become possible.

In short, SMEs should focus and strengthen internal accounting controls of the establishment and improvement of different stages of development for the specific business situation, the internal accounting control system to modify and improve, thus achieving the objectives of internal accounting controls, to ensure that enterprises can continue, stable and healthy development and improve the competitiveness of enterprises.


Main references
[1] Li Fengming, internal control study [M], Peking University Press, 2002
[2] Zhang Yixia, Shu Weyerhaeuser International Comparative Study of Internal Control [M], China Financial and Economic Publishing House, 2006
[3] Huang Yi and internal control design study [D], Jinan University .2005
[4] Zheng Ishibashi, Wang Jianjun, Zhao Ling importance of changes in the internal control elements - based on a questionnaire survey [J], Audit and Economic Research, 2008 (1)
[5] Ye Jianghong status of internal accounting control of [J] business management, 2007 (5)

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