The Internal Control Design For K Investigation Guarantee Co.LTD

Guarantee companies, the product of economic development, is a new kind of non-bank financial entities, which is recognized as a high-risk industry and a great acceleration to economic development and the ease of financing difficulties of small and medium-sized enterprises. However, "Huading and Chuangfu event" in Guangzhou, "China guarantee events" in Beijin has brought great negative impact on its normal development and fully exposed the lack of guarantee company internal control, which makes it particularly necessary to strengthen the guarantee company internal control. Based on the research of K investment guarantee co., LTD as well as the standards of new COSO framework(2013 edition), the enterprise internal control basic norms, and a complete set of the enterprise internal control guidelines, the thesis uses and incorporates the newest theoretical research results about the internal control design in the domestic and overseas countries, and makes an analysis of existing problems combined with the actual situation K investment guarantee co., LTD., and consequently studies and puts forward internal control design scheme.At the beginning of this paper, it expounds the background, the purpose and meaning of this research, together with researching methods and its contents and train of thought. Then it introduces the related theories of guarantee company’s internal control and risk management,among which the theory of the COSO internal control framework is elaborated. After the analysis of the current situation and the existing problems of internal control of K investment guarantee co., LTD. and search of the root of the problem, laying a solid foundation for the optimal design of the company’s internal control, the paper elaborates its implementation security conditions, system design and evaluation system, and comes up with the countermeasures of optimizing the internal control design, centering on "three goals", "five elements", "17 principle" in new COSO framework. This will be of great significance for the company to avoid risk and to enhance its competitiveness, as well as to fulfill its continuous,healthy and stable development strategy.This paper argues that guarantee companies must strengthen their internal control to sustain healthy development. Management control, plus risk prevention management andguarantee business is the core of the guarantee company internal control while internal control system design and evaluation system design is the focus with the criterion of the "three goals", "five elements", "17 principle" in new COSO framework. This paper will be of useful reference for other guarantee companies to strengthen their internal control.