Based on China's national characteristics,the opportunities and challenges brough about by China's entering of WTO,the functions of of the small-and-medium-sized enterprises(the SME) in other countries' economic development,as well as the recent situation of China's SME,China's own SME should,according to its strategic goal,development direction and own characteristics,enhance the efficency and effectivenss of internal control by emphasizing on the internal management system,establishing effective contral activities and improving the internal monitoring so as to achieve the goal of the corporation and to ensure the continious operation and long term development of the corporation.