Study On The Internal Control Problems Of Small Loan Companies

Internal control is an important indicator of the company management level, occupies a pivotal position in corporate governance and can protect the health of the enterprise operation. Through the integration and optimization of enterprise resources,it enhances the efficiency of resource using, promote the realization of the strategic objectives of the enterprise. In recent years, the rapid development of small and medium enterprises play an increasingly important role in our national economy,but the difficulty of SME financing has been an important factor hindering its healthy development. In this context, small loan companies came into being, providing a new path for financing of SMEs,which is conducive to solve the financing difficulties and help SMEs grow healthily. As an emerging industry, Small loan companys exist a variety of problems, Whose internal control is not perfect,and the financial risk is particularly a problem in recent years. All these indicate that it is important to build a small loan company’s internal control system which is suitable to it’s industry characteristics, controlling the risks within tolerable limits. Also, this is a topic worthy of study.In this article,it takes the micro-loan company internal control as the research object. First,it introduced the background, significance and the existing research results at home and abroad were reviewed. Then from the internal control basic theory, it expounded the meaning and elements of internal control.It selected H as a case of small loan companies, analysed internal and external reasons for the status of internal control and all sorts of problems. Finally, based on the five elements of internal control it designed internal control systems for the small loan company which is suitable for industry characteristics. Including:to shape the internal control environment well;to Strengthen credit risk management; to sound internal control system to ensure effective control measures to regulate; effectively play the role of internal audit to ensure effective internal oversight;to improve the internal control evaluation system.The perfect internal control system can ensure the company make the right decisions, give reasonable constraints for the management, stimulate talent of management, and effectively monitor them. Ultimately,it control the risks of the company to help its sustainable development.