The Discussion On Preventing Accounting Risk In Commercial Bank

In recent years,international and domestic banks’ major crime cases emerged endlessly.The cases not only had influenced economic operation but also destroyed the stability of the society. From2001our country audit report revealed "financial institutions using commercial paper market management disfigurement put large commercial banks funding to the stock market",to2002"real estate developers diddle bank funds by using false mortgage",again to2003" the collusion of inside and outside diddle bank funds",2004ICBC shanghai waigaoqiao sub-branch Yao kangda71.41million individual housing loan case,221million yuan non-performing loans cancel after verification case of bank of communications,Heilongjiang hesong street sub-branch of bank of china "gaoshan case" involved bills mountain reaching one billion yuan,320million yuan deposit evaporation case of jilin branch of China construction bank and so on,the big loss and adverse impact of those cases make wake-up call for us, risk prevention and control of bank accounting parts has attracted a lot of attention.This not only affects the operation of the economy,but also undermines social stability. After the full liberalization of the banking sector,the foreign banks enter and garrison China in succession, which constitute a strong competitive threat to domestic banks,especially have a significant impact on the business philosophy and risk prevention of bank.Particular the outbreak of the global financial crisis in2008,which make all banks face a significant business risk.Because of their imperfect system construction,China’s commercial banks are more prone to risk in business process.Bank accounting has always been throughout the bank management, as core part,accounting affects the bank’s operational risk and credit risk directly or indirectly in many ways,as the high position of bank risk,how to effectively deal with accounting risk has become an important part of risk prevention.After domestic banks opened to the world,many foreign banks entered China one after another.It has posed a strong competitive threat to domestic banks,and has exerted a great influence on the domestic banks’ management theory and risk prevention. Especially in the period during global financial crisis which broke out in2008,every bank faced the enormous business risk.Our country’s city commercial banks’ institutional improvement is not complete,so they are closer to the risk.Summarized from the past cases,accounting department faced more risk than other departments,so accounting risk prevention becomes very important,it attracts our attention.So it is imperative to strengthen prevention against accounting risk of city commercial banks.This article is based on the theoretical analysis, combining the domestic circumstances to demonstrate, analyzing the typical cases abroad to summarize some thoughts in effectively use of China commercial bank accounting risk prevention. First, based on the existing research on commercial bank accounting risk, according to review of forensic accounting at home and abroad, this article analysis the basic content of accounting risk and commercial bank accounting risk,it includes objectivity, concealment, complexity,sudden and consequences. It analysis commercial bank accounting risk from the risk of information distortion, accounting risk, accounting supervision and accounting personnel risk. It briefly discusses the commercial bank accounting risk related theoretical basis.Then, it summarizes existing problems in controlling of commercial bank accounting risk at present and analyzes its existing reason. Secondly, this article refers to Societe Generale Bank fraud as its case. Societe Generale has a long history,it’s not only the second largest bank in France,and it’s the pillars of financial industry,and also one of Europe’s most profitable banks.But the global super bank lost4900000000euro,about7.2billion because of traders operating irregularities overnight.This paper combines the Societe Generale Bank fraud case concerning the use of controlling accounting risk to specificly analysis the role of accounting risk in the various aspects of the management and draws some inspiration in the use of controlling accounting risk in China. Finally, combined with the related theoretical analysis and case analysis, from establishing the system of accounting standard, improving the revealing and disclosure of accounting information system, establishing the commercial bank accounting management system,improving the internal control system and accounting risk supervision system,strict accountability system,upgrading accountant risk prevention awareness and professional quality in several aspects to promote to control the commercial bank accounting risk in our country.The article is divided into five parts, each part is as follows:The first part is the introduction which introduces research background, significance of the article, review both at home and abroad, writing ideas and methods and the article framework; The second part is the overview of commercial bank accounting risk which describes the content of commercial bank accounting risk,introduce the commercial bank accounting risk concept,characteristics,classification,principle and the related theoretical basis; The third part summarizes and analyses the remaining problems of accounting risk in the commercial bank; The foutth part quoted Societe Generale Bank fraud as a case to analyze the control of accounting risk and to draw inspiration for our use; The fifth part summarized some thinking in the control of the accounting risk in China commercial bank according to related analysis.