Research On Internal Control Evaluation System Of LS County Rural Credit Cooperatives Based On Fuzzy Evaluation Method

As one of the main financial institutions in rural and local economies in China,Rural Credit Cooperatives are in a critical transition period for restructuring rural commercial banks.However,there are numbers of problems with passive internal control environments and inadequate evaluation systems in the Rural Credit Cooperatives.Their internal control evaluation levels need to be further improved.Based on the internal control evaluation system research,loopholes in the implementation of internal control of rural credit cooperatives can be found,and the internal control evaluation system can be constantly improved to form lessons for internal control evaluation,which is of great significance to the internal control of local rural credit cooperatives and the continuous improvement of internal control evaluation can promote the development of internal control of rural credit cooperatives in China.Taking into account the background of the evaluation of the internal control of rural credit cooperatives at the county level,this paper decided to take the LS County Rural Credit Cooperatives(LS County Rural Credit Cooperatives)as the research object.Firstly,the relevant theories of internal control evaluation and the conclusions of the research methods of domestic and foreign scholars were studied.Based on the field investigations and observations,the latest information on the internal control evaluation of LS County Rural Credit Cooperative were obtained and the business situation and organizational structure of LS County Rural Credit Cooperative were presented.Then,the case analysis method was used to analyze the problems and causes of its internal control.Secondly,this paper determined the internal control evaluation of LS County Rural Credit Cooperatives as the first-level evaluation index and the five elements of internal control(internal control environment,risk assessment,internal control activities,information and communication,and supervision,evaluation and Correction)as the second-level evaluation indicators,21 third-level evaluation indicators that met the actual situation of LS County Rural Credit Cooperatives were designed.Afterwards,based on fuzzy evaluation,a three-level evaluation index system for internal control of LS County Rural Credit Cooperatives was constructed.The analysis method(AHP)was adopted to determine and calculates the weights of the evaluation indicators at all levels,and the consistency check on the weights were performed.Finally,the constructed evaluation system was implemented and applied,and practical and high-quality suggestions were given.The research results show that the constructed evaluation system can provide a reference for the internal control evaluation of LS County Rural Credit Cooperatives,offer constructive opinions and feasibility measures for the internal control evaluation system of local rural credit cooperatives,and help strengthen the supervision of financial banks in China.