Research On Internal Control Of A Asset Management Company's Equity Investment

Mutual funds have been developing in our country for nearly 20 years.By the end of 2017,the total assets of mutual funds in China reached 11.6 trillion yuan,accounting for 21.64% of the total scale of the asset management business in the same period.As an important member of China's wealth management industry,public funds have an increasingly close interaction with social capital and huge space for development.Of course,behind the development of the industry,the risk is always huge.Equity investment,as one of the core businesses of a fund company,needs to further strengthen its internal control and risk management because of its high-risk and high-yield characteristics.The research is based on internal control of equity investment of a case company.This paper first introduces the internal control and risk management framework,principal-agent theory and the relevant laws and regulations of internal control of enterprises in China.It draws lessons from the theory and rules to define the internal control of equity investment in public funds.Secondly,this paper introduces the investing process and risk control process of the equity investment of Company A,analyzes the main risks that the Company faces in the process of equity investment,such as market risk,operational risk,decision risk and moral hazard,and analyzes the internal control measures to promote their experience,find its shortcomings,and propose improvements.The outstanding experience of A company's internal control includes strict human resources management,scientific research system and investment process and leading risk management system.The problems include lack of awareness of daily control,imperfect investment decision-making mechanism,imperfect transaction control and inadequate budgetary constraints.In order to solve these problems,this paper puts forward some suggestions on improving the internal control environment,optimizing the investment decisionmaking process,improving the transaction control mechanism and strengthening the implementation of the cost budget.