A Case Study on Internal Control System for Production and Inventory Cycle in the Manufacturing Industry:An Enterprise Risk Management Model Perspective

• Main Author: 張秀梅
• Other Authors: 李東峰博士
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/77688590873029954713

碩士 === 國立彰化師範大學 === 會計學系企業高階管理 === 99 === This paper aims to review the effectiveness of the traditional internal control systems design approach that based on the COSO framework of AICPA, with an example of a publicly listed company in the mobile parts manufacturing industry in Taiwan. An inventory management internal control system design is proposed base on the Enterprise Risk Management-Integrated Framework (heteafter, ERM) for internal control system reengineering. The analysis of internal control self assessment documents and interviews to the senior managers in the company were conducted based on the ERM framework to assess the effectiveness of the inventory management internal control system of the case company. The findings reveal that the company had no major weakness on the inventory internal control system. But neither the risk management process nor the objective setting process are sufficiently implemented. A risk-control matrix is proposed to improve the effectiveness of the inventory management system of the case company via balancing the risk of stock shortage, holding costs overspending.