The Research On The Internal Control Appraisal Of Z Trust Company

In June2008, since the Basic Standard for Enterprise Internal Control was published,Internal Control began to go deep into Chinese enterprises. And with the development ofinternal control in recent years, Internal Control Appraisal is to attract the attention anddiscussion of theory and practice. Internal Control Appraisal is a systematic and dynamicprocess, which is the enterprise’s board or similar authority to make a comprehensiveevaluation of the effectiveness of internal control, receive evaluation conclusion, and issuethe assessment report. It is an effective protection for Internal Control to effectivelyimplement and improve.In this paper, it draws an Internal Control Appraisal Crisis of the trust industry from aproject crisis of China Credit Trust. Trust industry as one of the four pillars of finance, ithas an important impact on the national economy. In recent years, with the rapiddevelopment of the trust industry, the trust industry is exposed to a lot of loopholes. Forexample, our trust companies are not good at Internal Control and risk managementsystem is imperfect. These problems have been a threat to the entire trust industry. If theyare not handled properly, they will affect the overall national economy. So we must take itseriously.In this paper, Z Trust Company is selected as the research object. Articles will bebased on the Basic Standard for Enterprise Internal Control and its supporting documents,combined with the actual situation of Z Trust Company, to introduce the current evaluationsystem of the internal controls and status quo of the internal control of Z trust. And basedon theory and practice, in order to introduce and analyze the status quo and problemsabout Internal Control Appraisal of Z Trust Company. And conclusions show that InternalControl Appraisal of Z Trust Company faces four major problems:(1) The InternalControl Appraisal Body lacks of independence, which resulting in conclusion of theinternal control appraisal is controversial.(2) Though the Internal Control System of Z Trust Company is perfect, the situation about “there is a system which does not perform”still remains. Internal Control Appraisal is also a mere formality. Internal controls did notreally get evaluated.(3) The Internal Control Appraisal Methods are too subjective andqualitative. The Internal Control Appraisal Methods of Z Trust Company are not scientificand objective. They tend to be somewhat subjective and qualitative description, and it ishard to understand.(4) Z Trust Company lacks of staff on Internal Control Appraisal,which may cause deviation of the internal control appraisal.Finally, for solving the problems of Internal Control Appraisal of Z Trust Company,the article proposes ideas and approaches.