Research On The Internal Control System Of Shenyang Financial Zone Branch,Agricultural Development Bank Of China

As one of China’s current policy-related banks the Agriculture Developm ent Bank of China(hereinafter referred to as ADBC) is not only assigned with the important task of managing the national fund for the purchase of cereals, cottons and oil. With all-round launch of China’s reform in the cereal market and the expansion of the business scope of ADBC, the risk s ADBC faces are growing increasingly complicated and diversified, and the im portance of internal control has become more and more important. How to improve the completeness of ADBC’s internal control system and solve issues during the internal control process have always been worthy of our thinking and research es. In the Third Plenary Se ssion of the 18 th Central Committee of the Party that was held not long ago, important statement of General Secretary Xi Jin Ping an d the Decision of the CPC Central Comm ittee on All-round Deepened Reform both pointed out that in the new year, based on the foundation of decent support to the purchase and storage of cerea ls cotton and oil, ADBC should work hard to explore ef fective operation modes that would support the urbanization and drive the construction of new country side and the developm ent of m odern agriculture, further reinforcing the effort to back up integra ted development of the urban and rural areas. ADB Shenyang Fina ncial and Commercial Development Zone Branch is a district-level sub-branch of ADBC Liaoning branch, carrying a previous name of Operating Site of the Operating Department of ADBC Liaoning Branch. A s an internal department of the Operating Department of ADBC Liaoning Branch(also known as ADBC Shenyang Branch), with increa sing turnover of loans, it started to form a separate legal entity since 2009. In 2012 upon the approval of relevant authorities including the ADBC Shenyang Financial and Commercial Developm ent Zone Branch was formally established in September. Upon becoming a separate legal entity, the branch continued the business of cash deposit and loan issuance which was previously the task of the Operating Department of ADBC Li aoning Branch. As a district-level bank branch with a short hist ory but quite big credit scale and business amount, it is a concern to think about how to guarantee the authenticity and completeness of various inform ation, improve financial managem ent level, guard against financial risk, defend and reduce opera ting issues as well as how to help the internal control system construction adapt to the requirement from the developm ent of socialist m arketing economy and to th e organizing and m anaging mode of the modern banking sector.First of all, this paper expounds the background of the research, significance and purposes as well as its study m ethods and contents, explaining the operating and managing status of ADBC Shenya ng Financial and Commercial Developm ent Zone Branch. Then, issues of this branch bank in the construction of the internal control system are brought forward, followed by deepen ed analysis in fi ve aspects of the internal environment, risk evaluation, control activities, information communication, as well as the cause analysis of these issues from the theoretical and practice point of views. Meanwhile, this paper would also c onduct an overall evaluation of its internal control system combined with its actual status of operation and m anagement, maintaining that it cou ld basically guarantee the accuracy of infor mation and th e conformity of operation activities, but that the re will be ce rtain extent of problems which shall be solved in terms of internal environment, information communication and internal m onitoring. Based on the comprehensive, applicable and objective principles, this paper proposes solutions to improve its intern al control system construction, holding the idea that the br anch bank should m ake improvements in four aspects: perfecting th e internal control structure, forming the em ployee restricting and m otivating mechanism, increasing the operating efficiency of the information communication system and re inforcing the m onitoring function of internal audit. Through such m easures, various management activities of the branch bank would have basic foundati on and its internal contro l system would be on the way to improvement and perfection.