Research On Accounting Risk Prevention Of Rural Cooperative Financial Institutions

Bank accounting,as a fundamental element,plays a critical role in the bank's opera tion and daily business practice.The top principals of bank accounting should be valid information and accuracy.Serving as the core procedure,the quality of bank accounting affects bank's reputation in many ways.Over the years,with the progress of financial engineering and the demand for diversification investment,various new financial instruments attempt have increased accounting risk.As the complexity of financial intermediary has been more complex,the potential accounting risk has been elevated as well.Risk management in the rural credit cooperatives need to target at prohibiting the burst of the systematic risk and control the potential loss.This paper summarizes the accounting risk of financial institutions from the existing research,discusses the accounting risk for domestic and international banks,catergorizes the types of accounting risks of rural credit cooperatives.This paper classifies the accounting risk into 4 brackets as follows: accouting information risk,risk of book-keeping,the risk of accounting supervision and the risk of accounting personnel.Combining with my practice experience,the paper proceeds with a theory of accounting risk in the rural credit cooperatives.According to the actual work experience,I point out some problems in the risk management of rural credit cooperatives and analyze the origins of the problems.This paper studies the case of risk management in Langfang City and illustrates the possibility of improvement in the accounting information disclosure system,the risk management system,the internal control system,the bank accounting risk supervision system,the more strict accountability system,the risk awareness of accounting staff and the professional quality.This paper proceeds as follows: the first sectionis the introduction elaborating the background and importance of this topic,the domestic and international literature and the research framework.In the second section,the paper examines the accounting risk of the rural credit cooperatives and introduces the concept,characteristics,classification and principles of the rural credit cooperatives.The third part,based on my practice experience in rural cooperative of Langfang City,points out the problems existing in the accounting risk management and finds out the potential reasons.The fourth part proposes the specific measures to reduce the accounting risk of rural credit cooperatives.