In what aspects is the environment of internal control system of fixed assets management not perfect?

I. Analysis of related elements of internal control of fixed assets

Internal control runs through the whole process of business activities, including five elements such as control environment, risk assessment, control activities, information and communication, and supervision, and is influenced by the board of directors, management and other personnel of the enterprise. The five elements of internal control system are extensive and interrelated, and the control environment is the basis of other control elements. As far as fixed assets are concerned, the control environment is related to the system construction, implementation and effect of fixed assets management; Risk assessment is directly related to the normal operation and maintenance and appreciation of fixed assets; Control activities are related to the normal use, reasonable amortization and value transfer (depreciation) of fixed assets; Information and communication are related to the reflection of the purchase, use and disposal of fixed assets through accounts and statements; Supervision is also a key aspect of internal control of fixed assets. Because the fixed assets have a large proportion of value, are used for a long time, are improperly used and amortized, or are damaged in advance, which has a great impact on the operating conditions, operating results and cash flow of enterprises, and belong to the key control aspects of enterprises, and are also the links where enterprises are prone to mistakes and abuses. Therefore, the supervision factors are also very important.

second, the analysis of the current situation of internal control of fixed assets

(a) the control environment is not perfect

the control environment directly affects the control consciousness of employees in enterprises and provides the basic rules and framework of internal control. At present, many enterprises have formulated relevant systems for the purchase and use of fixed assets, but in general, the relevant systems are not complete, such as the requirements for ethics and professional ethics in the job descriptions of some key positions such as fixed assets accounting and asset managers, and the special and important contents in recruitment and resignation are not perfect. In addition, although the company has formulated the methods and processes related to asset management, it has not implemented and implemented the relevant methods and processes sufficiently. For example, more enterprises are a mere formality in the transfer and inventory of fixed assets, which directly affects the safety and integrity of the company's fixed assets, the authenticity and accuracy of fixed assets records and the disclosure of fixed assets information. This deficiency will make it difficult for the company to effectively control assets.

(II) Imperfect risk assessment

The risk assessment work of many enterprises is still relatively weak, and a complete and unified corporate risk pre-control system has not been established: a complete and formal risk management system including risk expectation, identification, assessment, reporting and handling should be established. Even if some enterprises have established a risk assessment system, they are often scattered in various departments and business processes, mostly for post-event risk control, lacking in pre-event risk identification and assessment, and have not yet established a comprehensive risk control system. If there is no risk assessment system, it will be impossible to fully identify the risks in enterprise operation, and there may be risks of idle assets and waste of resources caused by blind investment, which will bring economic losses to enterprises.

(III) Lack of necessary pertinence of control activities

Control activities run through all levels and departments of the whole enterprise, including approval, authorization, verification, check, review of business performance, asset protection and division of responsibilities. Control activities run through the whole process of procurement, use, circulation and disposal of fixed assets. For the procurement of fixed assets, the corresponding examination and approval procedures need to be performed and carried out according to the procurement budget. When put into use, it is necessary to establish the management system of collecting responsibility, transfer and allocation system, depreciation system and so on. At the end of the use of fixed assets, it needs to be carried out according to the disposal system.

(D) Incomplete and untimely information and communication

On the one hand, it is relatively backward in management means. At present, many enterprises have traditional fixed assets management methods, and the management of accounts, cards and things is independent and separated from each other, and there is no system to organically link them together. There is a risk of inaccurate asset information, which affects the accuracy of financial reports, and at the same time makes it impossible for the management of the company to grasp the true and complete asset status. On the other hand, the content is rather confusing, and the phenomenon of "clearing before committing crimes, investigating before making chaos" is more serious. If the newly purchased assets are not recorded in time, resulting in inventory surplus, the formation of off-balance-sheet assets brings inconvenience to the management and use of fixed assets; The disposal control consciousness of fixed assets, such as scrapping and selling, is weak, and it has not been properly authorized and approved, and it has not been notified to the accounting department in time after treatment, resulting in the fact that the accounts are actually forgotten; Or the disposal income is not recorded, forming off-balance-sheet income, which brings opportunities for corruption and fraud; For depreciation and impairment, the assets that are not needed for a long time are not provided for impairment according to the actual situation according to the recoverable net value.

(V) Weak supervision

The physical accounts of fixed assets in some enterprise departments have not been checked with the financial accounts for a long time; The financial department did not ask the business department and the user department to report the use and management of fixed assets on a regular basis, and did not make a regular inventory of fixed assets. The related adjustment and change of fixed assets are not handled by relevant accounting, which leads to the phenomenon that the financial book of fixed assets is inflated. For example, the lending and borrowing of fixed assets in some enterprises have not been audited by the financial department, which has caused the disconnection between financial management and physical management. Another example is that some enterprises have lost a large number of fixed assets in order to reduce internal control costs, and some fixed assets have not been repaired or updated in time, which is in a state of scrapping; The same part of the assets have not been counted, and some have long since disappeared. These are all caused by human mismanagement.

Third, suggestions for improving the internal control of fixed assets based on internal control

(1) From the perspective of control environment

Enterprises always survive and develop in a certain environment. For enterprises, the internal and external environment is equally important. The control environment of internal control is the organization and code of conduct of key points and key personnel in internal control. In view of the internal control of fixed assets, the management should first establish a reasonable organizational structure, set up or improve the departments of procurement, acceptance, storage, budget and finance, clarify the positions and responsibilities, be independent of each other, and not exceed their authority and supervise each other. After defining the responsibilities of each department, managers should resolutely implement their internal control requirements. Through the formulation of key post management methods, the description of key post scope, requirements in professional ethics, recruitment and resignation are supplemented. At the same time, by improving the management methods of employee turnover, we will pay special attention to the handover of key positions, the transfer of company property, and the confidentiality of information.

(II) From the perspective of risk control

The management should have a sense of risk control, and timely evaluate the risks existing in the enterprise according to the objectives of fixed assets management. For example, due to objective factors such as the continuous development of science and technological progress, the equipment needs to be improved in time to meet the market demand; Or the risk caused by mismanagement due to loopholes in its own internal control system. Therefore, managers must have a sense of risk, and if problems are found, they should take timely measures to control risks.

(III) From the perspective of control procedures

1. Purchase and construction of fixed assets

For the purchase and construction of fixed assets of an enterprise, the enterprise shall carry out project establishment or budget management according to the amount or importance, which shall be signed and approved by the corresponding decision-making level of the enterprise and completed within the time limit specified by the company; After being audited by engineering, administration, information technology and other professional departments and leaving audit marks (signature and date), the management or authorized department of the company reviews and approves the purchase application within the limit and leaves traces; The contract of financial leasing project conforms to the relevant regulations of the company or the state, and the management or authorized department of the company reviews and approves the application for financial leasing business within the limit, leaving traces. After the purchase and construction is completed, the acceptance department can conduct relevant tests at the time of acceptance to see whether the fixed assets meet the requirements of the enterprise; When the acceptance is handed over to the custodian (user), it is necessary to carry out technical disclosure and improve the responsibility procedures.

2. Use, maintenance and repair of fixed assets

First of all, depreciation should be accrued reasonably according to the accounting system selected by the enterprise, and it should be objectified or expensed according to the cost object. Regularly check the accounts and cards, and leave a written record; If there are any differences, confirm and deal with the differences found in the check in time. Secondly, the fixed assets management department should record the use, maintenance, repair and transformation of fixed assets and communicate with the financial department; Fixed assets maintenance plan has corresponding management approval documents; The management shall conduct timely examination and approval within the maintenance authority specified by the company. Pay attention to the combination of repair and renovation. Thirdly, the inventory is in line with the policies and regulations formulated by the company, and at least once a year; The circular inventory report is consistent with the contents of the circular inventory plan and the circular inventory table, and the summary of assets with inventory gains and losses is consistent with the contents of the circular inventory report, and the management of the enterprise shall promptly reply the opinions on the inventory results and conduct accounting treatment in a timely manner.

3. Disposal of fixed assets

In view of the great influence of fixed assets on enterprises and strict records, besides keeping records, the disposal system must also be perfect and strict to meet the requirements of refined management, so as to ensure that the accounts are consistent with the facts and are not corrupted or misappropriated. Scrapping of assets must be technically appraised by the professional asset management department, with appropriate approval documents. The disposal price shall be determined according to the market evaluation, and the money shall be recovered in time and recorded. After the disposal, the description of the amount and nature of the accounting vouchers is consistent with the original documents cleared, and the fixed assets card is modified.

(IV) From the perspective of information and communication

Only by combining information transmission with communication management can the level of internal control management of fixed assets be improved. First of all, we should do a good job in equipment operation management, improve inspection records and statistics, formulate periodic plans for equipment maintenance and inventory inspection, and implement dynamic maintenance management. Secondly, it is necessary to do a good job in equipment maintenance management, automatically make a maintenance plan according to the equipment operation state and equipment maintenance cycle, make statistical analysis on equipment maintenance cost and its composition, maintenance plan completion rate, maintenance frequency and other data, and establish equipment maintenance files. Finally, it is necessary to make comprehensive statistics of equipment assets, and combine the complete basic situation, technical status, management level with economic benefits, state statistics and economic and technical statistical evaluation according to the equipment management operation records, so as to reasonably determine and evaluate the use efficiency of fixed assets and provide valuable reference information for the production and operation of enterprises and the purchase and construction of similar fixed assets.

introduce fixed assets information management system. The information management of fixed assets is the application of advanced information technology such as computer communication technology, network technology and bar code technology to the management of fixed assets, which makes the management of fixed assets more effective, fast and scientific. With the continuous expansion of enterprise scale, the number and variety of fixed assets have increased sharply, and all kinds of information about fixed assets have also multiplied. Through the information management system, the management efficiency of fixed assets can be greatly improved, and the increase and decrease of fixed assets and daily management information can be reflected in time.

(V) From the perspective of internal supervision

On the one hand, it is necessary to timely issue and improve the detailed rules for the implementation of fixed asset management according to the requirements of relevant documents of the company, and check the accounts and actual conditions in strict accordance with the requirements of the detailed rules, so as to truly and completely reflect the asset status, financial status and operating results of each unit and improve the quality of financial information. On the other hand, it is necessary to strengthen the training of existing internal control personnel, especially in information technology and laws and regulations, and at the same time optimize the professional structure of existing internal control personnel through recruitment and training, improve the professional quality of internal control personnel in production equipment and facilities, and ensure the development of fixed assets audit.

References:

[1] Yang Xiongsheng. Predicament and outlet of internal control theory, Accounting Research, 26(2).

[2] Zhu Rongen. Thoughts on establishing and perfecting internal control, Accounting Research, 21(1).

[3]