Research On Risk Auditing Internal Auditing Of Securities Companies

Having survived the American Civil War,two World Wars,the Great Depression,the September 11 th attacks and an acquisition,it has been standing tall for 158-year-old top investment bank in the United States-Lehman Brothers finally crashed in the subprime mortgage crisis that swept the world.collapse.Lehman Brothers has always been proud of its sophisticated risk management system,but it can still escape the fate of bankruptcy.People cannot help but ask: What role does its risk management play in the high-risk business of the company? Who will supervise and evaluate the company? Risk Management?Risk management is not only important for traditional industries,but also for high-risk securities industries.Securities companies,as the most important part of the securities industry,have a risk management level that not only directly affects the company's life and death,but also affects the entire securities industry.Is it healthy and orderly development? With the further acceleration of the reform process of China's securities market,the wave of innovations in the securities industry has created both opportunities and challenges for securities companies.According to Article 133 of the "Guidelines for the Internal Control of Securities Companies" promulgated by the China Securities Regulatory Commission,"Securities companies must establish supervisory and inspection departments or positions to independently perform the functions of supervision and inspection of compliance audits,financial audits,business audits,and risk control;Improve the control of defects and urge the relevant responsible units to make improvements in a timely manner.” The internal audit of securities companies monitors the entire process of the company's business activities in order to prevent risks,rectify violations,strengthen internal controls,and ensure the healthy development of securities companies.The internal audit department of a securities company has an important responsibility for the company's standardized operations.The extent of the internal audit function exerts a direct influence on the long-term survival and steady development of securities companies.Therefore,strengthening internal audit has become a top priority for securities companies.However,people feel very regrettable that although the supervision department has continued to emphasize the development of the internal audit work of securities companies,it has not achieved the desired results.On August 16,2013,EverbrightSecurities' strategic investment department appeared “Oolong”;In June of this year,the A shares suffered unprecedented hits of 1,000 shares,and the stock market continued to slump.Investors talked about stock changes,and the securities and securities financing businesses of a number of securities companies were forced to liquidate their positions,triggering an unpredictable price drop.Afterwards,the securities company organized a number of securities companies to form a "national team" to invest in the attempt to stabilize the market.However,CITIC Securities,which plays an important role in it,has as many as six people on the executive committee involved in the investigation by the China Securities Regulatory Commission due to suspected involvement in insider trading.Endlessly.These cases are all conveying a message that China's securities companies have many deficiencies in dealing with risk prevention and internal control management,further explaining that their internal audit work does not play a good role in preventing risks and improving business management.If the securities company's internal auditing only stays in the conventional means and fails to promptly reveal the weaknesses of the operation and management,the lack of internal control,and the key risk points,then such internal auditing is purely a matter of passing the court and meeting regulatory requirements.There are many areas in need of improvement.The research of this article is based on the current requirements of securities companies for risk management,focusing on fully utilizing the value-added functions of internal auditing to ensure a comprehensive and effective realization of risk management objectives,selecting Lianxun Securities Company as the research object,and conducting internal audits on securities companies.Based on relevant theories and risk-oriented related theories,the company has deeply analyzed the internal existence of Lianxun Securities Company based on the characteristics of significant difference in business differentiation,high degree of informatization,and multiple and scattered business outlets.The problems and the reasons and reasons for the formation of the risk management of the basic techniques and methods and modern auditing techniques and methods want to combine,combined with the securities company's own operating characteristics,and business management objectives.Based on strategic assessment and risk analysis,we will study the audit focus,rationally allocate internal audit resources,and propose an optimization plan to improve Lianxun Securities Company.The dissertation is divided into five parts.The first chapter is the introduction,which mainly expounds the research backgroundand significance of this topic,domestic and foreign literature review,research methods and framework.The second chapter is related theory of internal audit of securities companies and related risk-oriented internal audit theory.This chapter mainly discusses the characteristics of the securities industry and the internal auditing characteristics of securities companies,and elaborates the relevant theoretical research on risk-oriented internal audit,and analyzes The Necessity of Implementing Risk-Oriented Internal Audit to the Internal Audit of Securities Companies.The third chapter is the general situation and current situation of Lianxun Securities Company.The current situation of Lianxun Securities Company's internal auditing is discussed from the aspects of organization setup,auditors' situation,business scope and functions.The fourth chapter aims at summing up the five problems existing in the development of internal audit of Lianxun Securities Company and combining the relevant theories to carry out an in-depth analysis of these five issues.The fifth chapter proposes suggestions for the improvement of the internal audit problem of Lianxun Securities Company.According to the five problems found and the reasons,the corresponding countermeasures are proposed.Finally,the conclusions of the research are summed up.