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Internal control is the implementation of a corporate board of directors, management and other employees, designed to provide reasonable assurance that the process for the realization of the following types of target: the effectiveness and efficiency of operations; reliability of financial reporting; comply with the use of legal and regulatory . The overall budget as a means of control, has become the basis of the modern enterprise management, domestic enterprises, but mostly a mere formality for the application of the overall budget, is limited to the financial aspects, not integrated into the business activities of enterprises. JC Company engine plant as a parts factory for automobile manufacturing companies, the JC companies to carry out independent research and development, an important base for the creation of national brands. Plant to shoulder the independent research and development mission, if you can not in technological innovation continue to reduce production costs, improve the management level, will face the risk of independent research and development can not be accepted by the market. In this paper, the overall budget management of the internal control of the engine plant status quo and problems, identifying and analyzing the weak link of the budget management process set up engine plant in budgeting and budget organization, and how to set up scientific just budget assessment indicators proposed recommendation engine plant to achieve the strategic objectives of reducing costs play an important role, at the same time reference for other producers. Firstly, a brief overview of the the JC's engine plant external environment, internal conditions and strategic design, analysis shows that the plant is currently only in its infancy, the the external facing a highly competitive market environment, macroeconomic policy, changing the internal conditions are not met technological advantage and differentiation capacity, low cost is the only viable strategy. Secondly, the overall budget management of the engine plant internal control status quo research, mainly contains the following points: First, the budgeting as a basis JC company sales, as a matter of principle to balance production and sales. Second, both the preparation of operating and project budgets, licensing fees included in the operating budget of the project budget, non-authorized expenses reported to the company. Budgeting layer decomposition to the various departments, and decomposes into months, monthly basis and strictly enforce calculated completion. Assessment indicators have double standards, must be strictly completed the budget single assembly charges indicators in the budget on the basis of 5% cost reduction magnitude. Again, through the study of the status quo JC Company engine plant within the overall budget management control and found that there are some defects and weak links, and unable to adapt to the rapid development of enterprises, such as: lack of proper budgetary responsibility organization, without the participation of key management personnel and promote, powers and responsibilities of inappropriate distribution managers to pay full attention to, but this information is not by setting the organizational mechanisms so that every employee clearly recognize the importance and fundamental significance of the budget, budget management formality; lack of risk assessment mechanism, in the process of budgeting and management did not fully take into account the existence of the risk, the preparation of a single basis and the preparation method, can not adapt to the changing external environment and operating conditions; does not fully analyze the purpose of the budget management and control mechanisms, approval process overly complex approval purpose is not clear enough, the lack of a monitoring mechanism, can not make timely adjustments to changing circumstances; performance indicators set unreasonable, without considering the nature of the different functions of various departments and cost, with a drop percentage of cost of the various departments. assessment. Finally, the problems for the overall budget management of the engine plant, combined with the internal control theory proposed few improvements, to emphasize comprehensive budget management is not limited to data statistics, but also to play its key role in business management. As the starting point to the strategic objectives of the engine plant, set of scientific and reasonable budget objectives, budget management should fully contact the actual situation of the factory, to avoid budget numbers game. The second is to create a budget management system, responsibility for the implementation of the key management personnel, clear the budget management responsibilities of the various departments and personnel to improve the competence of personnel in key positions. Third, the establishment of an integrated information system, the budget approval process paperless, and simplify the approval process, and improve management efficiency by fully authorized. The fourth is to develop the scientific assessment indicators, concerned about the authenticity, reliability and accuracy of the data generated in the process of budget implementation, to ensure that the the budget indicators examination reasoned; fifth is to establish good communication channels by the information system, and actively promote the full involved in budget management.
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