A Study of Internal Control

Failure or crisis of the credit departments might cause serious troubles to the entitle economy and society in Taiwan. Therefore, to improve the managerial efficiency through sound internal control system, and to foresee the crisis / failure through applicable early warning system are research issues of great importance.

The objectives of the study were to discuss the shortcomings of internal control the credit departments were facing, and to suggest a proper direction to improve such situation. In addition,an early warning model for financial crisis was developed to estimate the possibility of failure / crisis for each individual credit department, so that precautions could be adopted to prevent possible financial crises from happening.