Research On The Internal Control Of M Small Loan Co., Ltd.

With the development of China’s rural economy, rural financial system is not sound, with less financial institutions, the lack of financial services such as problem has become an important factor restricting the development of rural economy. At the same time, China’s reform and opening-up, small and medium-sized enterprises have sprung up, small and medium-sized enterprises and farmers to survive and development, lack of working capital. Its constraints and the remote many problems, such as location makes it unable to Banks and other formal financial institutions to apply for a loan, but only to the folk lending institutions to apply for a loan, capital loans difficult to become a bottleneck restricting the development of most small and medium-sized enterprises and farmers.Due to the small and medium-sized enterprises and farmers money demand is big, the folk financial markets increasingly flourish. Although folk lending institutions can solve part of the small and medium-sized enterprises and farmers’difficulty in getting loans, but the informal, loan interest rate is high, the lack of regulation, the problem such as order, bring hidden danger to the state’s financial security and social order, to small and medium-sized enterprises and fanners to increase burden.In this context, since 2005, our country from the pilot to the national launch of a new financial services organization form, the small loan companies. In a variety of policy of good environment, small loans company is booming in China. As of December 31,2014, our country has set up a small loan companies 8,791, employees 109,948 people,8,283.06 paid-in capital of one hundred million yuan,9,420 yuan loan balance of 9,420.38.In recent years, Zhejiang, Guangdong, Chongqing, Xiamen, Hainan and other regions to provide the small loan companies with more access to financing.The mounting financial risks pose great threat to the rapid development of small loan companies. Enron and the su bprime crisis as a warning, warning that we should strive to establish internal control syste m, in order to protect the development of new industries. The research of internal control o four country starts late, and it is very important to construct the small loan company’s inter nal control system. At present, we must establish and improve the small loan companies to improve the effective internal control system.M small loan co., LTD. (hereinafter referred to as "M company) is one of hainan province with small loans for the main business of the company, the company was founded five years, business development rapidly, a minor celebrity in hainan area. With the development of business, the company more internal control problems, such as: insufficient internal environment, risk management attaches great importance to the poor, weak control activities, information and communication, the problem such as the lack of effective supervision, these problems have certain representativeness in the small loan companies, has a certain research value.We started with the basic theory of internal control, reviewed its meanings, developm ent and research results, the existing research results in this paper.This paper go further in t he framework of the theory of COSO, the practice of small loan company’s internal contro l, incorporated the actual case of the small loan company M to conduct in-depth analysis, g et to reasons, and give the solution,such ad improve the internal control environment, risk prevention, risk control, effective communication and effective supervision. Perfect interna l control is to ensure that the company is the first prerequisite for the correct decision-maki ng, to inspire the enthusiasm of employees and management,make them the work orderly, discipline and on solid ground, in order to achieve effective internal control to achieve risk control, to make the company work well.This article mainly includes five parts, respectively is the introduction, the theory anal ysis worldwide related. M company’s internal control present situation and the existing pro blems, M company internal control strategy and the conclusion.