The Construction Of Commercial Banks' Internal Control Weaknesses Judgment Standard System

Commercial banks play a very important role in the development and stability of the whole society.In recent years,cases of bank huge loss emerge continually.The fundamental reason is that there are internal control weaknesses in commercial banks..But at present,a unified,strong-operation of the standard system for commercial banks internal control weaknesses judgment has not yet been established.Under this background,this article uses the latest COSO theory of 17 principles,82 focus and the"deming circle" theory to construct an internal control weaknesses judgment standard system of commercial banks.This article uses theoretical analysis and empirical research,to analyze,use the literature and data from three rounds of questionnaires deeply and fully.First of all,the article confirms the structure for the commercial banks internal control weaknesses judgment index system of three levels,49 specific index.Second,this article uses the Analytic Hierarchy Process to determine the weight value of each index for each level.And then the index is divided into three categories through Cluster Analysis:material index?important index and ordinary index for internal control weaknesses.After that,based on the data from questionnaires,this article determines the internal control weaknesses judgment interval including five levels.Third,this article will focus on using the achievements mentioned above in the loan and deposit business of commercial banks through fuzzy comprehensive evaluation method.And I make the conclusion that the internal control condition of the two kinds of businesses belongs to the level of B defined by the article.And there are not internal control weaknesses of this two major business,but the internal control system still need to be improved.Finally,the article analyze the area where the internal control weaknesses emerge more likely,including the following items:personnel training,goal setting,specific control activities,fraud risk,execution environment,information and communication,employee self checking system,evaluation system of internal control weaknesses and weaknesses rectification.Accordingly,I put forward the following suggestions:starting with scientific goals and plans,focusing on the strong enforcement of control activities,ensuring internal control by monitoring and evaluation,keeping energetic by weaknesses rectification to build a balanced development and stepped internal control system.The contribution of this article is that it constructs the standard system of internal control weaknesses for commercial banks with practicality and operability from the perspective of internal control weaknesses for the first time.This system contains the judgment index,and judgment index is divided into three categories according to weight.Also the system defines five intervals of the internal control weaknesses.I also make a comprehensive analysis of the commercial internal control weaknesses prone area and put forward some useful suggestions.This study not only enriches the relevant theoretical norms of internal control,but also provides a new way for commercial banks and other enterprises to judge the internal control weaknesses.Because of the limitation of research resources and time,there are some shortcomings in this article.First,the design of questionaires is not perfect and there is a certain degree of subjectivity in the filling of the questionnaires.Second,this research fails to investigate all kinds of businesses' internal control weaknesses in commercial banks.Third,The standard system constructed in this study needs a lot of real case tests to be revised.