ON ESTABLISHING AN INTERNAL ACCOUNTING CONTROL SYSTEM FOR LISTED CORPORATION'S FINANCIAL GUARANTEE

Irregularities are quite rampant in corporations in China in their financial guarantee activities.Some companies do not hold good financial status,and some others guarantee for each other and thus result in a listed company guarantee circle phenomenon.From the perspective of corporation's internal management,this paper analyzes the reasons for this phenomenon and its negative impact on the companies themselves.Based on such an analysis,it puts forward some suggestions to strengthen the establishment of an internal accounting control system,i.e.implementing the post division and authorized approval system,strengthening the guarantee evaluation system and the examination and approval system,and strictly controlling the guarantee operation.