Research On Information Disclosure Of Internal Control Of State-Owned List Commercial Banks In China

Commercial banks must be complete and perfect its internal control system due to its special characteristics of the industry has a high risk, and it must to issue a complete and effective internal control self-assessment. Especially the five state-owned commercial banks listed as a major pillar of the national economy and our financial system, complete and effective internal control self-assessment report will help protect the safety and soundness of economic activity to run. At present, although all of China listed state-owned commercial banks have issued annual internal control self-assessment report, but because of the late start of internal control disclosure of relevant laws and regulation promulgated there is a certain lag, resulting in a lack of internal control self-assessment report on effectiveness. Against this backgroung, this article start form the nature of internal control concepts, listing state-owned commercial banks of China’s internal control self-assessment report for the study, to analysis the current listing state-owned commercial bank’s internal control self-assessment report, in order to identify internal control self-assessment report to disclose the existence of the problem and suggest solutions.Firstly, Combined with the actual situation of China’s listed state-owned commercial banks, can be found in our listed state-owned commercial banks in terms of information disclosure of internal control following main issues:(1)There is no enough clear division of responsibilities in the internal control evaluation process;(2)Self-assessment report does not have a regulate content;(3)Information disclosed in the Self-assessment report is not comprehensive;(4) The information disclosed in report is lack of comparability;(5)The usefulness of information disclosed in report is low. And a series of other issues. These problems led to the state-owned commercial banks listed on the internal control self-assessment report lack of effectiveness. The main causes of the problems have:(1)Management’s awareness of the extent of the internal control self-assessment report is not enough;(2)The independence of the internal audit department is not high;(3)The cost of internal control self-assessment report is too high;(4)External needs of internal control is not high;(5)In the internal control evaluation process, there is lack of uniform standards;(6)The legal supervision for information disclosure of internal control is not enough.Secondly, United States have been perfecting their laws and regulation for internal control disclosure since July 2002 to develop a “Sarbanes-Oxley Act”. Chinese state-owned listed banks internal control information disclosure system is on the basis of United State commercial banks’ internal control evaluation system to a certain extent, combined with China’s specific national conditions to establish and develop. Therefore, the study of US commercial banks control self-assessment report, to further enhance the effectiveness of China’s listed commercial banks internal control self-assessment report, has important significance. This paper analyzes the internal US commercial banks control self-assessment system and its characteristics, and derive the following revelation:(1)Clear the main responsibility for the evaluation report;(2)Establish a viable evaluation criteria;(3)Select the range of reasonable evaluation;(4)Strengthen external audit.Finally, for the reasons which cause low effectiveness of Chinese state-owned listed banks’ self-assessment report of internal control, this paper form the bank itself, government, social aspects to improve the effectiveness of internal control self-assessment report:(1)Strengthen Chinese state-owned commercial listed banks’ self-construction, such as establish good corporate management structure, improve the understanding of management for the importance of internal control self-assessment report, clear the main responsibility for the evaluation report, use scientific evaluation methods and evaluation procedures and the internal audit department should give full play to the role;(2)Improve and perfect the building of the system of internal control evaluation, such as regulate the internal control self-assessment form and content of the report, improve internal control evaluation criteria and establish the accountability mechanisms of internal control self-assessment report;(3)Strengthen the supervision of external sectors for the internal control self-assessment report disclosed. Hope that the effectiveness of China’s listed state-owned commercial banks’ internal control self-assessment report, making China’s disclosure system of internal control information more complete.