Research On Internal Control System For Securities Firms

Securities firms play the critical incomparable role in the securities markets,but they also face lots of dangers in the process of their rapid development. The securities firms frequently lose their control of the risks, because of their obscure the views of internal control and the absence of the scientific, rational, actual, effective regulations and mechanisms restrictions. The proverb says, "You can sail a boat for ten thousands years without falling, if you take caution enough." Therefore, the securities firms should rely on the norms in choosing the prudent operations, strengthening their internal restrains, in order to rise the reliability and the development. Naturally, the internal control that has huge research values both in theory and in practice becomes a proposition urgent to solve for securities firms.In the introduction, this paper primarily clarifies the present significance of theoretical research on the internal control for the securities firms through the successive lines of deductions, and addresses the trains of thought and the research framework of this paper. It comprehensively considers the basic theory and the application theory of the internal control for the securities firms from the view of system with the typically normative and qualitative analytical approach. It attempts to get a scientific view of the internal control for the securities firms. It introduces some new concepts, especially in laws. It collects the close materials as much as possible, especially in the laws and the regulations in this field. It avoids piling or listing others'opinions, and strives for innovation and development.Chapter 1 summarizes the present theory bases of internal control for securities firms. It regards the following materials as theory bases: COSO report, Framework for the evaluation of internal control systems, Risk management and control guidance for securities firms and their supervisors, Principles of strengthening internal control for financial institutions, and Internal control system guidance for securities firms.Chapter 2 puts forward the internal control system framework and its core arguments through borrowing and initiating present achievements. It claims that the nature of the internal control for securities firms should be determined as one type of inherent system , distinguished from external control, that the management objectives of internal control system for securities firms include: security business objectives(core objectives), security operational environment objectives(basic objectives), security operational information objectives(conditional objectives); According to the management objectives , the internal control system for securities firms is divided into security business subsystem , security operational environment subsystem, and security operational information subsystem. The control objectives of internal control system for securities firms refers to guard against and eliminate the certain risks that the securities firms faced at the process of achieving management objectives with reasonable assurance. The control...