Abstract:  Chinese titanium alloy enterprises started late compared with foreign  titanium alloy enterprises, and the internal environment foundation was  weak. This  paper starts with the basic connotation of internal control, analyzes  the five elements of enterprise internal control and its functions, and  analyzes some problems existing in titanium alloy enterprises, and finds  out the reasons to seek effective internal control improvement methods.  Standardizing  the organizational governance structure, optimizing the internal  environment, raising awareness of risk management, and strengthening  corporate culture construction can strengthen internal construction,  improve production management efficiency, and reduce the cost of  titanium and titanium alloys.

China Papers /3/view-6571045.htm

Keywords: internal control risk management titanium alloy enterprise

 1 Overview

Domestically,  we have attached great importance to the development of new titanium  alloys. However, due to the late start of the domestic titanium alloy  industry, there is a certain distance from foreign countries. Mainly reflected in three aspects: 1 domestic rare mining potential research. 2 Titanium application technology lags far behind abroad. 3 The original titanium material design and process technology are less, and the basic research is weak. Therefore,  in order to shorten the gap with foreign countries and improve the  efficiency of the use of titanium alloys in China, it is necessary to  reduce the cost of titanium alloys so that they are no longer expensive  materials. Studying  the internal control of titanium alloy enterprises is of great  significance for reducing production costs, improving risk management  capabilities, and sustainable development of enterprises. Internal  control refers to an internal control policy and system that fully and  effectively uses various resources in order to achieve the set goals in a  given environment.

2 Current status and problems of internal air conditioning system in titanium alloy enterprises in China

2.1 Five elements of internal control

The establishment and implementation of effective internal control by enterprises should have the following five elements:

First, the internal environment - the foundation. The  internal environment is a general term for a variety of factors that  influence the internal and internal control of an enterprise.

Second, risk assessment - an important link. In order to determine risk response strategies, companies must identify and assess risks in business management activities.

Third, control activities - specific ways. Control  activities are based on the results of risk assessment, combined with  the methods and means of risk response strategies to ensure the  realization of the objectives of internal control.

Fourth, information and communication - important conditions. In  order to timely acquire and transmit information about internal  control, it is necessary to communicate internally and internally and  externally.

Fifth, internal supervision - an important guarantee. It is necessary to rely on internal supervision to judge whether the internal control is effective or not.

2.2 Status and problems of internal control

Generally  speaking, China's titanium alloy enterprises have low internal control  levels, which are mainly reflected in the following four aspects:

First, the internal control environment is not perfect. At present, the problems in the internal control environment of titanium alloy enterprises are:

1 organizational structure is irrational

Some  members of the board of directors and management members of the  Titanium Alloys have several positions within the company. The powers  and responsibilities of internal control are not clear. The management  rights and management rights are not separated. The management rights  cannot be effectively controlled and used. The abuse of power, the use of power for personal gains, etc., further worsen the internal control environment of enterprises.

2 The role of internal audit is difficult to play

The  key to auditing is to have independence. However, many enterprises in  China have internal audit departments, but these departments do not have  their own independence, and their role is difficult to play.

3 does not attach importance to corporate culture

As  a kind of soft power, culture is the role of guidance, cohesion,  motivation and self-discipline to influence and regulate people's way of  thinking and behavior, so that people can gain spiritual motivation,  and make individual values and social values tend to be consistent,  and become the whole internal control mechanism. The basis for effective functioning. However, many enterprises have not paid attention to cultural construction, resulting in imperfect internal control environment.

4 failed to use human resources reasonably

First, internal control execution is not in place. Since  effective internal control must be carried out by highly qualified  employees, the effectiveness of internal control of the enterprise  depends on the quality of the employees in the enterprise. Therefore,  enterprises should control the quality of employees when selecting  talents. However,  many companies have not formulated a sustainable human resource policy  that leads to improper employment or brain drain, which makes internal  control implementation in place.

Second, risk management awareness is low. Due  to the late start of China's titanium alloy, the company's management  experience is not rich, and the introduction of some foreign management  theories may not be suitable for China's national conditions. Managers  lack awareness of risk management, do not have a mature risk management  system, are unable to withstand risks, and are unable to cope with  sudden risks.

Third, the control activities are not perfect. Many  companies today lack a clear system of authorization and distribution  of responsibilities, resulting in unclear powers and responsibilities.  Many abuses of power and malpractices prevent the internal control of  enterprises from being implemented.

Fourth, do not pay attention to internal control supervision. At  present, many enterprises' internal control and supervision mechanisms  are inefficient, which leads to defects in the enterprise that cannot be  discovered in time, affecting the correct and efficient operation of  the enterprise. Some  enterprises that have set up audit and supervision departments are  still limited to traditional financial supervision, and they are biased  towards the role of discipline inspection and supervision, and cannot  effectively perform supervision functions.

Fifth, internal information communication is not smooth. When  the company does not have an effective information feedback mechanism,  the internal information communication is not smooth, which makes the  leadership unable to know the actual situation in many jobs in time, and  the violation behavior cannot be corrected immediately.

3 Analysis of the causes of internal control problems in China's titanium alloy enterprises

3.1 The contradiction of the binary control subject causes internal control to create a loophole

The  two rights of enterprise ownership and management rights are separated,  in which the owner is the main body of control, and the operator with  management rights is controlled. On  the one hand, the owner has the ultimate control over the enterprise,  and the salary of the operator is also determined by the owner; on the  other hand, in the actual business process, the operator has the control  over the enterprise, and the owner relies on the operator to realize  the enterprise value. The  improvement of the assets and the increase of their own assets, so the  two are mutually restrictive, the contradictions coexist, and the  contradiction between the two control subjects has caused loopholes in  internal control.

1 The internal responsibility of the internal control is not clear. The premise and guarantee of the healthy development of modern enterprises is the separation of the two powers. Internal control should reflect the owner's own will, but in fact the operator is controlled by the company. This  is bound to face the moral hazard of the operator, the consequences of  moral hazard are difficult to avoid, resulting in the loss of the audit  function, the accounting information is controlled by the operator, and  finally the control is invalid.

2 Insufficient internal control is also related to the cover of corporate owners. Internal  control is the embodiment of controlling the will of the main body. The  operator controls the operation and operation of the enterprise. The  accounting information is the only source of information for all  controlling companies. The accounting information is compiled by the  operator, so the owner's subject consciousness is weakened. And led to the weakening of the role of internal control.

3  There is a contradiction in the purpose of internal control, which is  caused by the conflict of interests between the owner and the operator. The  owner of the enterprise pays attention to the long-term development of  the enterprise, while the operator of the enterprise pays attention to  the short-term interests, and the objectives of the two are opposite,  which leads to the opposition of the purpose of internal control. 3.2  The idea of a planned economy is still continuing in the enterprise,  resulting in the lack of attention to internal control.

Before  the reform and opening up in 1978, China implemented the planned  economy. The government arranged all the characteristics of the planned  economy. After the reform and opening up, the market economy was  gradually established, and the government and enterprises were  separated, but they were still affected by the planned economy. Not paying attention.

3.3 Weakening of supervision mechanism has a negative impact on internal control

Many of the constraints that companies receive in their management and operations activities come from outside the company. However,  because different departments have different supervision mechanisms, it  is difficult to integrate the supervision mechanism, which weakens the  supervision mechanism.

1  Finance and taxation audits and banks are the supervisory bodies in the  society. They perform their own supervisory functions only in  accordance with their own wishes and needs, resulting in the loosening  of the supervision mechanism. This loose supervision mechanism greatly  reduces the ability of enterprises to bind. .

2  Audit has some important functions, such as independent supervision and  impartial functions, but these functions are not taken seriously. The  audit has not formed certain norms, the legalization is not perfect, and  the regularization of auditing has been neglected. Most  of the issues examined are humane, and penalties are exempted from  penalties, which reduces the effectiveness of law enforcement.

3.4  Internal control is difficult to coordinate and is also attributed to  the lack of corporate culture and internal controllers.

Many  companies do not pay attention to their own culture, and cannot  implement the rules and regulations that are formulated. The corporate  system and culture cannot be combined. A  company does not have its own excellent culture. The effect of  controlling it for control alone is definitely unsatisfactory. If the  company has a small change, the enterprise may become a loose sand.

There is a strong correlation between the quality and culture of business managers themselves. High-quality managers can lead to the establishment of a good corporate culture. The  quality of employees is also the foundation of corporate culture  construction. Therefore, we must pay attention to the quality of  employees. But in reality, the training of employees is not satisfactory. Some  short-term behaviors of the managers of the enterprise cause neglect of  the improvement of the quality of the employees; some enterprises have  poor benefits and do not have enough funds to support the training of  the employees, which in turn causes the performance of the enterprises  to decline, leading to a vicious circle; the means of education There  are also problems. Most education only pays attention to morality and  corporate system, ignores the legal system, and shuns the end. The  management measures are weak, and it is impossible to effectively  encourage business managers, auditors and financial personnel.

4 China's enterprise internal control improvement measures

4.1 Improve the internal control environment of the enterprise

1 normative organizational structure

Enterprises  should actively introduce an external director or independent director  system, avoid overlapping of board members and management members,  establish the core position of the board of directors in the internal  control system, and improve the board's ability to make scientific  decisions and internal supervision.

2 Strengthen corporate culture construction

Enterprises  should strengthen the awareness of corporate culture construction,  strengthen the propaganda of corporate culture, so that every employee  of the enterprise knows what corporate culture is? What benefits does corporate culture bring to the company? Only by attaching importance to the construction of corporate culture can the internal control of the enterprise be improved.

4.2 Strengthening control activities to improve

Enterprises  should separate unrelated positions and clarify their responsibilities.  Responsibilities should be implemented in detail between departments  and personnel, and problems should be immediately pursued. In  order to allow all businesses to be properly and truly completed, to  prevent employees from abuse of power and malpractices, and to  effectively carry out internal control, we must conduct separate and  strict audits on some key links.

4.3 Pay attention to internal control supervision

Pay attention to and strengthen the supervision of internal control. Enterprises  that commit serious violations of laws and regulations must deal with  them in a timely manner in accordance with relevant regulations;  strengthen the supervision of internal control by independent audits. Independent  auditing enables managers to place greater emphasis on internal  controls and to guide companies in optimizing internal controls.

4.4 Risk Management Method

After  identifying and assessing the risks that exist, we should effectively  manage the risks, and the methods of risk management are:

1 risk avoidance

Effectively adopting a risk aversion strategy that does not eliminate the risk minimizes the risk.

2 prevention risks

Take active and effective risk prevention measures to reduce and eliminate the occurrence of risks.

3 transfer risk

In  order to avoid the risk of corporate infringement, before the risk will  occur, it will use the methods of sale, transfer, insurance and other  methods to transfer the existing risks.

In  summary, compared with foreign countries, although the titanium alloy  industry in China started relatively late, as long as the internal  control environment is improved, the corporate governance structure is  standardized, the corporate culture is built, the risk management  awareness is enhanced, and the internal control of the enterprise is  strengthened. And the production and development of titanium alloys reduce costs.

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