The Study Of Internal Control System Design And Evaluation Of China’s Securities Company In Securities Brokerage Business

Securities Inc. is one of major participants in the securities market, its healthy operation is in favor of promoting healthy development of securities market and playing stock market functions. But a few years ago, some law violation events of Southern Securities, Dapeng Securities, Xinhua securities continued, leading to abnormal fluctuations in the stock market, which greatly damaged interests of investors. This paper strives to lay stress on making some improvement and investigating the sound internal control system of the securities brokerage business, aimed at contributing to further regulation and healthy development of securities companies.This paper is divided into seven chapters:Chapter Ⅰ. Introduction. It describes background and significance, ideas, frameworks and research methods of the study.Chapter Ⅱ. History and features of internal control of securities companies in China, with focuses on development of internal control and phase characteristics in our country.Chapter Ⅲ. Theoretical basis of securities company’s internal control.This is the major part of this article. And it describes domestic and foreign internal control theories and related rules and regulations. In the meanwhile, they are rationale for designing internal control system of securities brokerage business.Chapter Ⅳ. The main problems and genetic analysis of current securities brokerage business internal control system. This chapter points out some main problems of securities brokerage business internal control system, such as inadequate corporate governance, imperfect internal control systems and weak enforcement of internal control system, and gives a brief analysis of causes.Chapter Ⅴ. Case Study. The case of Southern Securities Company from birth to bankruptcy, a typical case, further reveals the importance of strengthening internal controls of securities brokerage business.Chapter Ⅵ. The basic ideas of internal control system designs of domestic securities brokerage business. This is the main body of this article. This chapter indicates general requirements of securities company’s internal control systems, based on existing internal control system,and focuses on development and complement of existing securities brokerage business internal control system, including securities brokerage business processes and standardized management, personnel management and other aspects.Chapter Ⅶ. The evaluation of internal control quality of securities brokerage business and several problems that need attention. This chapter emphasizes the necessity and contents of evaluating securities company’s internal control quality and lists a number of issues for discussion, which should be paid attention while evaluating internal control quality.The main contribution of this paperThe main contribution of this paper lies in making improvement and supplement to existing internal control system of securities brokerage business and establishing an internal control quality evaluation system focusing on reasonableness of internal control design, effectiveness of implementation and adaptability of application. This system can provide reference for internal control quality evaluation of domestic securities brokerage business.Directions of future researchBased on actual situations, this work makes some complements to the existing internal control system of securities brokerage business and gives some personal views on contents of internal control system evaluation, yet these still need to be refined and improved in future practice.