Research On Internal Control Over Lfnancia Reports Of DN Securities Company

As the uppermost intermediary agency on the stock market, security companieshave a quite special place and are one of the most important lines of defense.Especially under the current circumstance where security companies getting listed insuccession, they assume a dual identity of intermediary agency and listed companies.In addition, innovative development situation of security business has posed newintrinsic requirements on relevant risk control including financial reporting internalcontrol. Therefore, it is significant to conduct research on enhancing financialreporting internal control which aims at realizing credibility of financial reporting.This paper tries to expound several theories that need urgent improvement andpractical issues of security companies’ financial reporting internal control in theperspective of security company’s financial reporting internal control on the basis ofCOSO Internal Control-Collections Framework and combining actual situation ofsecurity companies in our country, so as to fill the relevant gap.This paper analyzes theoretical connotation of financial reporting internalcontrol, pointing out that financial reporting internal control can be summarized as acontrol process implemented by corporate board of directors, board of supervisors,management and all employees to realize credibility (authentic and complete) offinancial reporting in accordance with requirements of accounting standards andrelated laws as well as regulations. Five elements of financial reporting internalcontrol which are control environment, risk assessment, control activities, information&communication and internal inspection constitute an integrated system, relate toeach other, and are jointly committed to reducing relevant risk of financial reportingto an acceptable level.Basing on the above theoretical analysis, this paper applies COSO frameworktheory to propose principles and thinking on building financial reporting internalcontrol system using DN security company as a specific example in way of analyzingits current status of internal control and its existent problems, and conducts in-depth research and analysis. From the angle of five constituent elements which are controlenvironment, risk assessment, control activities, information&communication andinternal inspection, this paper focuses on establishing complete and effective financialreporting internal control system through five indispensible factors includingimproving a company’s financial reporting internal control environment, implementingcomprehensive financial reporting risk assessment, tightening financial reportingcontrol access, smoothing financial reporting communication channels andcompleting financial reporting internal control inspection, so that credibility offinancial reporting is achieved to provide power insurance for the company’slong-term steady and normative development.