Research On Internal Control Mechanisms Of Agricultural Development Bank

The Agricultural Development Bank of China（hereinafter referred to as theAgricultural Development Bank）is one of China ’s three policy banks, the importantpart of the national financial system and a witness of China’s financial reform. Sinceits inception, the Agricultural Development Bank has made leaps and boundsprogress in many ways and has created a brilliant chapter in the history of thecountry’s financial reform. However, due to the Agricultural Development Bank bythe state’s approach to economic policy and the environmental impact of thedomestic and international growth, the Agricultural Development Bank has tootraditional business management and do not keep up with the pace of developmentof the times. Particularly after the China’s accession to WTO, the financial industryof our country followed it into an era of internationalization and also faced the evenmore tense of the competition pressure and competition atmosphere. Therefore, inorder to safeguard the sustained and stable development of the AgriculturalDevelopment Bank and keep up with the pace of the times, we have to take someadvanced management methods and conduct a series of reform. Internal accountingcontrol is the basis of the Banking normal operation, throughout the course ofbusiness in the banking sector as a whole effective system of internal accountingcontrols to ensure correct implementation of effective internal control managementprogram, of course, for the Agricultural Development Bank as well. All managementof the Agricultural Development Bank should establish a sound internal accountingcontrol system to enable smooth and effective to carry out of the work of the Agricultural Development Bank. Strengthening internal accounting managementand supervision of the Agricultural Development Bank can improve the quality ofaccounting information, protect the security of the assets, make the AgriculturalDevelopment Bank correctly implement the state’s financial guidelines and policiesto ensure that the business activities of the healthy and stable.However, how toensure that the Agricultural Development Bank of accounting information is true andcomplete to improve financial management and the prevention of financial risks,how to prevent and reduce the Agricultural Development Bank’s flaws of operationsand how to make the internal accounting control mechanisms to adapt to therequirements of the development of the socialist economy and to adapt to the modernorganization and management model, this has become a major problem.This paper describes the background，meaning, the purpose of the study andresearch methods and content, and then interrogate issue of the management ofinternal control of Agricultural Development Bank. It analyze deeply their currentsituation from the control environment, risk assessment, control activities，information and communication，monitoring and review of the five principal aspects,at the same time analyze the internal accounting controls from the theoretical and therealistic perspective. In addition, combining the actual operation and management,we also make overall evaluation of accounting controls about the AgriculturalDevelopment Bank. We believe that it can substantially ensure correct accountinginformation and financial activities of legitimate and promote the improvement ofeconomic efficiency and the realization of business objectives. However, there is avery serious problem and many other aspects of the internal control management andit must be addressed fundamentally. Establishing a modern financial enterprisesystem and preventing the production of a variety of accounting risk has become thebasis of the Agricultural Development Bank of survival and development. Thisarticle will be based on the principles of strategic, objectivity, comprehensiveness and applicability to redesign a new program about the internal accounting controlmechanisms. We believe the Agricultural Development Bank should reform from theestablishment of a comprehensive and clear corporate governance structure, a clearinternal structure, the establishment of improve internal oversight bodies and internalsupervision system and establish a sound risk assessment system for restructuring.At the same time, we provides a range of countermeasures and suggestions toimprove the internal accounting control mechanisms of the AgriculturalDevelopment Bank, make each management activities evidence-based and make itsinternal accounting control mechanisms better.