The Present Situation And Consummation Countermeasure Of The Internal Control In Henan Rural Credit Union

Rural credit union is an important part of financial institutions, the establishment andimplementation of internal control is of great significance for rural credit cooperatives. Inthis paper, case study method to rural credit cooperatives in Henan province as the researchobject, based on the five elements of internal control, investigate the status of its internalcontrols, analyzes the existing problems, a targeted improvement recommendations. Thefirst part of the article is an introduction. First pointed out in Henan is a rural creditcooperatives set up over60years in the Central Plains Financial main force. Since itsinception, mainly in rural services, support local initiatives and played an important role.Although Henan Province, rural credit cooperatives can business has developed rapidly inrecent years, there are still many loopholes to risk prevention, and in the construction of theinternal control system has also lagged. These deficiencies can also cause these years ofinternal control cases occur frequently in internal credit unions to credit unions has causedtremendous losses. These issues involve the high internal management seriously affected theimage of rural credit cooperatives in the eyes of the public. Secondly, special finishing thefinancial cases from2006to2010occurred in Henan Province of banking institutions, acomprehensive analysis of these data the proportion of rural small and medium financialinstitutions involved and the amount involved. Henan Province, rural credit cooperatives inorder to illustrate the importance of internal controls and the urgency of reform. The secondpart is the status of rural credit cooperatives in Henan internal control relevant cases, as wellas problems caused by the case leads. Potential problems of rural credit cooperatives inHenan Province is the third part of internal control analysis. On the basis of the causes of rural credit cooperatives were analyzed internal control deficiencies. The fourth part, basedon the existence of internal control aspects of rural credit cooperatives, will be divided intofour categories of safeguards. Strengthen the internal control system and internal staffawareness; improve the ability of anti-technology to accelerate the construction ofinformation systems; enhance the ability to identify and strictly control operational riskprocedures; establish and improve the accountability system to improve the internal auditsystem audit. Respectively, according to the main type of business is divided into the basicmethods and RCC safeguards nine categories of business and internal control type analysis,layout of internal control. These services are bankers’ acceptances class, treasury cash andteller cash rear classes, savings deposit, deposit units, fund settlement class, homereceivables, collection and payment type, loan type, nine kinds of online banking servicestype. Propose solutions based on different types. Finally, further analysis shows that, at thisstage to protect one of the fundamental security of rural credit cooperatives in Henan stableoperation that is to improve and strengthen the internal control system of rural creditcooperatives in Henan Province. Establish a sound and effective risk control, internal controlsystem is to promote the standardization of Henan Province, rural credit cooperatives system,scientific management, task legalization of a very important business. At the same timeestablish and improve the institutional system is the basic duty of Henan Province, ruralcredit cooperatives related management. Of course, this is also the stage to strengthen theinternal construction of Henan rural credit cooperatives, deepening reform needs. Whilestrengthening the internal construction of Henan rural credit cooperatives, but also toimprove their core competitiveness, and enhance their capacity for self-development and theneed to strengthen internal controls.