China Private Medical Research on Internal Control of Enterprises
|School||Southwestern University of Finance and Economics|
|Keywords||Private enterprise Pharmacy enterprise Internal control|
Medicine industry, a safeguard of human life and health and a promotion of human development, is becoming a sunrise industry, while also facing policy supervision, quality control and other high risks. With more and more private enterprises entering the pharmaceutical industry, there will be more internal control risks which were reflected in a series of drug safety events in recent years such as "Poisonous Capsule ","Armillarisin A "," Medicine Bribe ", etc. These events showed us that a large number of serious problems, having existed in internal controls of medical field, are challenging the survival and development of medical industry. To guarantee private pharmaceutical companies a better development and provide medicines with higher quality for our society, it’s of much significance to study the internal control of medical industry. On the basis of Internal Control Overall Framework, the COSO released the Overall Framework of Enterprise Risk Management in2004. And in June,2008and in April,2010, Chinese government released Enterprise Internal Control Basic Norms and three Enterprise Internal Control Guidelines which has improved the theories about internal controls into a much higher level. And those instruments of law also provide strong theory basis and guiding foundations for researchers to study the internal control of medical industry.Researching internal control and risk management as a whole now is in initial stage of development. Therefore, it will speed the research by studying the internal control on the basis of new situation. Moreover, the study on internal control from the angle of private enterprises will accelerate the knowing and practice of private enterprises about internal control and risk management. I have worked for many years in the medical industry and started the research basing on quests for many problems existing in the private enterprise I worked in to supply specific practice instructions on internal controls in my company and improve the company’s ability to dealing with risks. By theoretical researches with the combination of practical situations, this paper can provide feasible ideas and programs for improvement about internal control of private medical enterprises. Except for promoting the management of enterprises, it will achieve the purpose that theories can lead the practice and practice can testify theories.This paper consists of five chapters:The first chapter, introduction. This article introduces the research background and significance, research ideas and framework, the emergence and development of internal control theory.The second chapter, relating to internal control theory based on risk management. Introduce and analyze our internal control system refer to "enterprise risk management framework ", this chapter elicits our "basic standard for enterprise internal control" and the three supporting guidelines through the introduction of "enterprise risk management framework" theory, and lays the foundation of basis for this article. The chapter recaps the connection between the risk management and internal control for better comprehension.The third chapter, internal control analysis presenting in one private pharmaceutical enterprise. This chapter mainly emphasizes the internal control characteristics in this enterprise under premise of introducing the present situation of pharmaceutical industry and the enterprise’s operation management. The presentation develops over the five factors of "basic standard for enterprise internal control". All the presentation is ready for the specific analysis in the following chapters.The fourth chapter, analyze the internal control in one private pharmaceutical company. Firstly simply introduce the basic condition of this company, then develops over the five factors of "the basic standard for enterprise internal control", through the analysis, the author proposes that the company internal control construction still exist many problems which need to be improved.The fifth chapter, analyze the corrective action for internal control to the company. Theoretically based on the second chapter and practically based on the third chapter and the fourth chapter, it focuses on the company’s internal control improvement direction and specific improvement measures. In this way, the aim of putting theory in the guidance of practice, and practice supporting theory is fulfilled. The main contribution of this paper lies in:Integrate risk management theory into the internal control, providing some new ideas and practice for the study of internal control of private enterprises.give the overall implementation framework and detail theory reference to the private pharmaceutical enterprises.