Research On Optimization Of Evaluation System Of Internal Control In Rural Banks

At present,village and town banks have gradually taken a place in our financial system,playing the important role of "capillaries" and becoming an important link in the comprehensive implementation of the rural revitalization strategy and meeting the increasing financial needs of rural areas.The main strategic positioning of rural banks is to "support agriculture and small businesses",and their business scope is scattered in all links of agricultural and rural production and operation,effectively supporting the needs of financial development in rural areas.However,due to the late start and slow development of rural banks,there is a big gap between them and other large state-owned banks and commercial banks in terms of operation compliance and internal control effectiveness.At the same time,rural banks generally blindly expand the scale of operation,unstable sources of income for service objects,large proportion of agriculture-related loans,difficult recovery,weak risk prevention and control ability,weak management consciousness and other reasons lead to frequent risk incidents of rural banks.In particular,the difficulty of online deposit withdrawal in many rural banks in Henan Province has aroused public concerns about the operation of rural banks.The characteristics of small scale and low management level have become synonymous with rural banks.This incident also exposed the low corporate governance ability of rural banks,weak internal control and other problems.The evaluation of internal control can truly reflect the development of internal control,find the loopholes of internal control,fill in time,help the internal control to play its role in stabilizing the business and helping the realization of the strategic goals of the enterprise.At the same time,the application of internal control evaluation results can help enterprises improve the operating environment and constantly improve the stability of enterprise operation.This article takes the evaluation of the internal control of LH village and town banks as the starting point,focuses on the overall framework of COSO internal control,and refers to relevant theories to analyze the problems and reasons of the internal control evaluation system of 8 village and town banks that belong to the same development bank.Then,based on the relevant problems and reasons,an optimization plan is designed for the internal control evaluation system of village and town banks.Based on the specific case analysis of LH Rural Bank,optimize its current internal control evaluation system according to the optimization plan.By applying the new and old evaluation systems and comparing and analyzing the application results,it is found that the new evaluation system is more scientific and practical through itemized analysis of the application results.Finally,targeted measures are proposed to ensure the smooth application of the internal control evaluation system.