Effectiveness Evaluation And Strategy Study On Internal Control System Of A Security Company

As an important tool in company risk management, internal control plays an importantrole in company management. The concept that internal control and risk management shouldbe ahead of business development has been widely accepted. Internal control systemcontinues to collect and organize the company operation information, in order to identify avariety of potential internal and external risks faced by business segment. Based on a fullassessment, appropriate response measures are embedded in the management process toensure the control objectives through the internal control system. Advanced internationalmanagement practices suggest that companies need perfect internal risk management andcontrol system as a basis. Securities industry was born along with high-risk in our countryand risk events in security companies will lead to greater external effects, so internal controlshould be particularly concerned.This paper intends to research and summarize the basic theory of internal control andmanagement by taking A security company as the study sample, combined with internalcontrol practices principled content. Using the industry’s latest internal matrix analysis,starting from A securities company management and business lines and the five elements ofinternal control-the "internal environment, risk assessment, control activities, informationand communication, internal supervision", we subdivide A company’s internal managementand business processes. Using sample analysis and case test method, we carry out testing andselecting work based on the effectiveness of the design process and analyze details ofimportant business lines of A company for the formation of internal control matrix. We carryout the implementation of the validity test, in an effort to find A company’s internal controlmanagement system both in the design and implementation process defects. We proposesolutions to improve decision-making for defects and ultimately improve the internal controlmanagement level of A securities company. And as an example, it can provide a reference forupgrading the level of control methods for other similar securities companies within theindustry.