Research On Internal Control Appraisal Of Listed Commercial Banks In China

The international financial crisis has spawned global financial reform. Banking industry in China is also in the process of integration and internationalization. The competition among commercial banks is increasingly fierce. The formation process of Commercial Bank’s Competitiveness is similar to the construction process of its unique internal control system. As the most important part of management system, whether internal control system can efficiently operating is related to the steady and health of a commercial bank. The Internal control appraisal is an indispensable part of the internal control system. Up to now, in the area of theory research, the results of theory and case study on the Internal control appraisal are respectively quite mature, especially using quantitative tool of Analytic Hierarchy Process (AHP for short) and Fuzzy Appraisal System (FAS for short) to evaluate a single commercial bank’s internal control system. However, researching and case studies on evaluating and sorting the internal system quality of several banks are very weak, even still a new field. Therefore, it’s of a theoretical value and practical significance for the paper to analyze the evaluation of commercial bank’s internal control system. The main contributions of this thesis are as follows:First of all, this paper introduces relevant research about the internal control appraisal theories and methods at home and abroad. Based on the theories, this paper puts forward the appraisal process of commercial banks’internal control system. The core idea is:the commercial bank should definite appraisal subject, use risk-oriented method and internal audit procedures to evaluate the key control point then collect evaluation results and make conclusion.Secondly, this paper builds an internal control appraisal index framework of the commercial bank based on Guidance on Internal Control of the Commercial Banks and the Internal Control Integrated Framework. The five elements of internal control system are the main body of this framework.Thirdly, this paper makes a survey of internal control information disclosure of listed commercial banks in China. This paper takes the Internal Control Self-evaluation Report, Independent Director Report and Annual Report from2007to2013as the investigation objects. Based on these data, this paper makes a descriptive statistical analysis about the internal control appraisal of listed commercial banks in China. Then this paper applies AHP and Grey Relational Method to evaluate and sort the quality of listed commercial banks’ internal control system in2012based on the internal control appraisal index framework with empirical method.Last but not least, according to the results of empirical research above, this paper proposes some problems about Internal control appraisal in China listed banks and some related solutions...