Accounting and Finance
REGULATION OF THE SUPERVISORY BOARD IN JOINT STOCK COMPANY

To enhance the role of control in the Company, the Enterprise Law has provisions related to the establishment of the Supervisory Board in a joint stock company. Along with strengthening the corporate governance, the Prime Minister issued Decree No. 71/2017 / ND-CP of June 6, 2017, on Corporate Governance, which applies to public companies. Along with the development of enterprises, on January 22, 2019, the Government issued Decree 05/2019 / ND-CP stipulating the internal audit work in state agencies and public non-business units and business.

 
Types of internal controls and corresponding solutions in the business

Sales and delivery control

- Reasonable commitment of delivery schedule: Before committing to the delivery date or another way, the salesperson needs approval.

- Receive orders in accordance with terms and conditions: Standardised and pre-numbered order form and the signature of the authorized person when accepting the order.

 
Liquidity analysis

Liquidity analysis is based on information about short-term assets and short-term liabilities of the company in order to assess the short-term financial status of the company. There are two important financial indicators that businesses need to consider when analyzing a company's liquidity: current  ratio and quick ratio.

 
«StartPrev1234567NextEnd»