Research On Information Disclosure Of Internal Control Of Huaxia Bank

With the continuous development of the financial sector, due to the high risk ofthe banking sector, its requirements of risk prevention are increasing. Bankruptcy ofBarings Bank, the financial crisis in2008and a series of events make us realize theimportance of internal control of an bank, the weakness of internal control will likelyforce the bank into bankruptcy.Investors can get informed of conditions of internalcontrol of a bank by information disclosure of internal control, according to the signaltheory, if a bank’s internal control management is better, it will actively discloserelevant information, so that investors see its obvious advantages in terms of internalcontrol, it will enhance the attraction to investors and offer creditors legitimatesecurity; If a bank’s internal control is not perfect, then its relevant disclosure willfollow the old rules and regulations, it is formalized, the quality of information is nothigh, it can not provide useful information for investors to make decisions, so that thevalue of the information disclosure of internal control is not high, lack of practicality.So improving the information disclosure of internal control will help strengthen thebank’s internal control, making the bank develop sustainedly and healthy. With the "basic norms" in2008and " Implementation Guidelines " in2010, our stage ofdisclosure of internal control information has get into the mandatory disclosure stage.Grant Thornton Accounting Firm issued the verification opinion for Huaxia Bank’sinternal control self-assessment report for two consecutive years in2010and2011,the audit report is not standard, lack of assurance and less authoritative.The article chooses the disclosure of internal control information of Huaxia Bankas a research object, the first part describes the background and significance,domesticand foreign research status,research methods and the frame;the second part introducesthe meaning and the evolution of information disclosure of internal control, the formsand the content of disclosure, the theoretical basis of the information disclosure ofinternal control;the third part introduces Huaxia Bank and describes the informationdisclosure of internal control of Huaxia Bank from two aspects of forms and content;the fourth part identifies the problems of the information disclosure of internalcontrol, including the disclosure of formalization, lack of disclosure of the internal control deficiencies and other issues, by external and internal cause analysis, externalcauses includes inadequate laws and regulations, lack of supervision and so on, fromthe bank ’s point of view, mainly because the bank is lack of disclosure motivation andhas an unreasonable governance structure and so on;the fifth part put forwardsuggestions to solve problems of information disclosure of internal control, includingimproving the relevant laws and regulations, improving internal control of HuaxiaBank, strengthening the supervision of information disclosure.