Research On Internal Control Environment Of NE Securities

As an important part of the corporate governance structure,the internal control system plays an important role in the compliance operation of the enterprise,and the internal control environment determines whether the internal control system can be strictly implemented in the company,which is the cornerstone to ensure the stable development of the enterprise.With the outbreak of the COVID-19 in recent years,the uncertainty of the global economy has increased,and the disorder of the financial market order has also occurred from time to time.It is difficult for securities companies to be independent,and many securities companies have run in violation of regulations.In recent years,Northeast Securities has experienced loopholes in the supervision and implementation of internal control in the sales of financial products,brokerage business and other aspects,which has caused losses to the company’s economic interests,but also brought negative impact on the company’s reputation and financial market.Therefore,it is necessary to study and improve the internal control environment of Northeast Securities Company.This paper studies the internal control environment of Northeast Securities Company.Northeast Securities Company is an earlier securities company in China.Although the company has established an internal control system,due to the gradual opening of the financial market and the continuous innovation and development of financial products,the company is in the transition stage of business diversification and product diversification.The internal control system should also be adjusted to adapt to the expanding new business and increasingly complex corporate organizational structure.This paper mainly refers to COSO’s internal control framework,Chinese internal control norms and relevant documents,first discusses the relevant theories of the internal control environment,and then analyzes the current situation of the internal control environment and the current internal control defects of Northeast Securities Company from five aspects of corporate governance structure,development strategy,human resource management,social responsibility and corporate culture according to the company’s internal situation and the relevant reports disclosed by the company.After research,it is found that the corporate governance structure of Northeast Securities is imperfect,the development strategy does not match the environment,the human resources management is chaotic,the social responsibility is not sufficient,and the cultural construction is not strong.Then,the causes of these problems are analyzed.Finally,according to these problems,the paper puts forward suggestions for optimizing the internal control environment and improving the security measures of Northeast Securities.First,it introduces investors of various natures,diversifies the ownership structure and strengthens the corporate governance function.Secondly,the development strategy should match the environment and adjust the strategic development direction flexibly according to the changes of the environment.The third is to improve the human resources system,improve the training and assessment mechanism,and give employees reasonable compensation.Finally,strengthen social responsibility and corporate culture construction,give play to the synergy with internal control,and ensure the compliance operation of enterprises.I hope that this article can provide useful help for the improvement of the internal control environment of Northeast Securities Company,reduce the company’s operational risk,put forward effective measures for corporate governance,and also provide reference for other relevant financial institutions.