Research On Internal Control Issues Of The Everbright Securities

The securities firm is the securities industry risk's rallying point.The health operation of the securities market is essential to our national economy.Standard operation and health development has received widespread attention from the society.In practice,internal control is not conducive to innovation and development,emphasis on business expansion,underestimate risk,passively cater external regulatory requirements,resulting in the consequence that securities firms risk constantly be exposed.And bring huge losses to the firm,or even seriously affect the stable development of China's securities market,be punished,withdrawn,closed by China Securities Regulatory Commission,or be received by the government.It has proved that: strengthening the internal control is the radical measures to ensure the firms' health development and standard operation.The 8.16 fat finger event has fully exposed the internal control deficiencies of the Everbright Securities.As opinions vary,no unanimous conclusion can be drawn.Here I just want to discuss the event from an academic perspective and puts forward suggestions on perfecting the internal control of Everbright securities instead of legal and compliance issues.This paper is divided into six parts,the first part introduces the research background,significance,research methods and literature review about the internal control theory development and evolution.The second part is the theoretical basis,describes the relevant theory and standard.The third part analyzes The third part elaborate Everbright Securities firm,fat finger event.The forth part provides its internal control condition,The fifth part analyzes the everbright securities internal control main problem is: risk assessment and risk control failures.The last part put forward suggestions about Everbright Securities Company's internal control problems.I hope this study can offer help and improve the Everbright Securities Company's internal control.Meanwhile,this event give a reference to other securities firms: to expand their business in the future not too blindly and keep risk awareness all the time,internal control can be effectively implemented.