Application Of Enterprise Risk Management Mode On Internal Auditing In Chinese Bank

In recent years, large sums of dead assets can't be lowered for a long time, and financially misconducts occur again and again in our commercial banks. During "the Auditing Storm"started by the state auditing office, some major commercial banks were hit one by one and they have caused the great concern and surprise to different circles of the society. With the raped progress of the reform of shareholding system on commercial banks, and the fierce banking competition after entering the WTO, there is no doubt that it is meaningful to establish the standardized and advanced internal auditing systems on modern commercial banks, and to study and enforce efficient and firm internal auditing measures. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. On the detail analysis of enterprise-risk-management mode,it is pointed out that interal auditing play a big part in enterprise risk-controlling as an important component part of enterprise risk management system. Enterprise-risk-management mode provides control environment and method guidance. Theory of risk management in commercial bank has passed through four stages in its development, such as management on assets,management on debets,management on assets and debets,total risk management. The debut of the《New Agreement of Basel》marked the importation and implementatiom of idea of enterprise risk management in commercial bank.In order to indentify and early warn of risk and crisis, banks in different countries more or less depend fiancial institutions risk-rating system .The author of this thesis analyzed the auditing system of Chinese bank comparing with overseas bank and pointed out the problem of disadvantageous external environment, independence internal structure, lagging ideas, weak methods and measures. In late 2004,the head office of People's Construction Bank of China reformed the present supervision system ,organized the department of auditing. A preliminary operative mode of bank risk-based auditing had been made. The author of this thesis made a concrete analysis in very detail and draw a applicatiom conclusion frame for auditing system.In the last part of this thesis , it is poited out that modeling via economics measure more largely and complicatedly is a clinatiom to control and warn of risk effectively in internal auditing in the future.