Research On The Financial Internal Control System Of LJ Insurance Company

COSO report of USA is considered to be a major breakthrough in the internal controltheory research. Furthermore, the internal control framework mentioned by the report atpresent has been widely accepted in the international community. In June2008, Norms ofEnterprise Internal Control is jointly issued by the ministry of finance, Reference COSOreport, China securities regulatory commission, national auditing administration, Chinabanking regulatory commission and China insurance regulatory commission, requiring itsimplement on the listed companies. With the boost of the financial insurance managementsystem reform of the listed companies in recent years, LJ insurer company’s internal controlrisk has become increasingly predominant. Also, the enterprise financial management isfacing crucial subjects, such as accounting behaviour regulation and the financial internalcontrol system of the company enhancement. LJ company desperately need the norms that issuitable for the current financial enterprise internal control management in order to meet dailymanagement and the needs of national supervision.This paper mainly analyses the existing problems and reasons in the process of LJinsurer company’s financial internal control as COSO framework based on its presentsituation analysis of financial internal control. Then this paper constructs the principles,objectives, frame and content of LJ insurer company’s financial internal control system underCOSO framework, and determines the process and methods of the financial internal controlrisk assessment. Meanwhile, it comparatively analyses both old and new system through keyrisk point data, and establishes four safeguard measures after the publish of new system.Moreover, the analysis results are finished through the new system in LJ trial run, effectivelyreducing its internal control’s financial risks. The new financial internal control systemestablished by LJ insurer company has a positive effect on effectively reducing managerialrisks, and is rather helpful to other insurance company’s financial internal control.