Internal Control of Commercial Banks<br/>—Based on Case Study of Shanghai Pudong Development Bank
- 1 School of Management, Jinan University, Guangzhou, China
Abstract
Commercial banks occupy an important position in China’s financial system. In recent years, with the development of economy, a series of problems arise in the process of risk management and internal control, which have a negative effect on market economy. As a result, people pay more attention to internal control, hoping to establish a better internal control system and improve the ability of commercial banks to identify and prevent risks. This paper is based on the five elements of COSO control framework, and selects the nationwide joint-stock commercial banks —Shanghai Pudong Development Bank as a research case to study. Through the in-depth analysis of the control environment, risk assessment, control activities, communication and supervision mechanism of Shanghai Pudong Development Bank, we can find the defects of internal control system and give feasible suggestions.
- Abbott, L. J., Parker, S., Peters, G. F., & Rama, D. V. (2007). Corporate Governance, Audit Quality, and the Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing. The Accounting Review, 82, 803-835. https://doi.org/10.2308/accr.2007.82.4.803
- Colbert, J. (2008). How to Monitor Internal Controls. The Journal of Corporate Accounting & Finance, 19, 41-45.
- Jin, H. P. (2016). Analysis of the Internal Control Audit Model of Commercial Banks from the Perspective of Comprehensive Risk Management. Internal Auditing in China, 11, 15-19.
- Jokipii, A. (2010). Determinants and Consequences of Internal Control in Firms: A Contingency Theory Based Analysis. Journal of Management Governance, 14, 115-144. https://doi.org/10.1007/s10997-009-9085-x
- Li, C., Sun, L. L., & Ettredge, M. L. (2010). Financial Executive Qualifications, Financial Executive Turnover, and Adverse SOX 404 Opinions. Journal of Accounting & Economics, 50, 93-110. https://doi.org/10.1016/j.jacceco.2010.01.003
- Shen, Q. F. (2010). Discussion on the Internal Control of Chinese Commercial Banks from the Perspective of Risk Management. Journal of Socialist Theory Guide, No. 5, 100-102.
- Sun, L. (2008). Analysis and Reflection on the Internal Control of Commercial Banks. Science & Technology Association Forum, No. 2, 132-133.
- Zhang, W. Y. (2014). Analysis on the Internal Control of Commercial Bank Risks under the COSO Integration Framework. Western Finance and Accounting, 12, 43-44.