Research On Commercial Bank Internal Control Over Financial Reporting

Since 80s in the last century, some big banks'going under have been exacerbated by the financial crisis which initiated by some country in the world. It has been discovered that the most important and noticeable factor of their bankrupts was the weakness of internal control. If one commercial bank's internal control contains many defects, its financial report must be an uncertainty one. In recent years, there have been many papers and works internal control of the commercial banks and some of them were prove to be valuable, however, most of the papers and works are tackling with wide fields, there is hardly any study on the internal control over commercial banks financial statements. From the interaction between the internal control and financial statements, this paper studies on the problems which exist in the internal control over commercial banks'financial statements, then, I put forward a few proposals about how to perfect the commercial banks'internal control. During this study depended on the subject, we cannot just learn more about the importance of the internal control over commercial banks financial statements, but more attention will be paid to if the commercial banks'internal control is competent, such as the reports'formulation of environment and foundation,the course of the financial information disclosure. Moreover, people will also pay close attention to the effectiveness that these controls act on guarding against the risk of bank accounting. Only effective internal control can make sure the certainty of commercial banks'financial statements.The study method adopted in this paper is to combine the discipline study method with the case study method. After the introduction of some correlation theories, this paper gets to the main idea, that the study on the internal control over commercial banks'financial statements. Then, the paper shows some problems that currently induced from the internal control over commercial banks'financial statements, and the reasons are analyzed and improving projects are put forward. The main part of the article is made up of five chapters.The first part is an introduction of the academic study of internal control over commercial banks'financial statements, then illuminates the significances and ways of the study about it and the innovation of this thesis. The second part is the foundation theories part, introducing:the connotation and content of The target of financial report, theory of internal control of commercial banks and the connotation and content of the internal control over financial statements. Then, we also study the relation between the assertions of financial statements and each element of internal control. In the third part, the paper shows some problems that currently induced from the internal control over commercial banks'financial statements. After that, the reasons are analyzed and improving projects are put forward in the fourth part.The last part is summarization and prospect:summarizes the view and conclusion of the paper and limitations.