Research On Internal Control System Design In L Subbranch Of China Construction Bank

As the mainstay of the financial system, China’s commercial banks operational condition is closely linked with the stability of the entire financial system, the imperfect individual bank’s internal control system and operational risks may spread to the entire financial system, causing incalculable damage. From the reality of China’s commercial banks, how to design effective bank’s internal control system and improve the level of the bank’s internal control in order to prevent risks is particularly necessary and urgent.This paper takes Xi’an L sub-branch of Bank of China as a research target. Based on a thorough study of the theories of internal control home and abroad as well as methodology principles, such as system theory, cybernetics theory and information theory etc., it starts with research into the current situation of L branch, analyzing the problems and the relevant causes. We conclude that it is necessary to set up an efficient internal control system. Then it sets up the general targets and design principles for the internal control system of L branch, and puts forward a general plan, which aims to set up a dynamic, risk-control oriented, internal-supervision and external-audit coordinated internal control system based on internal control environment and information management system, with the focus on financial product. On this basis, this paper designed internal controls system of the L sub-branch, including the control environment subsystem, risk assessment subsystem, control activities subsystems, information and communication subsystem and supervision subsystem. And finally, this study evaluate the new control system and highlight its scientific and reasonable aspect.The research of this paper has a guiding role for L sub-branches to establish a sound internal control system, strengthen the soundness of operations, improve the core competitiveness. Meanwhile, this paper conducts a preliminary study on the design of the internal control systems of the sub-branche of the state-owned commercial banks. It is hoped to provide a useful reference for the construction of internal control system for other banks.