A Bank Internal Audit Problems And Countermeasures Research

Independent, objective and effective internal audit is an important means and guarantee mechanism for commercial banks to improve risk management, strengthen internal controls and improve corporate management. Despite the fact that the continuously deepening international financial integration has facilitated rapid development of internal audits of A bank, there are still many defects and deficiencies in this process which not only restricts the role of audit functions but also affects the development of internal audit. Given the current conditions and problems facing internal audit of A bank, comprehensive measures should be taken from the perspective of corporate governance by referring to the development process and successful experience of internal audit of domestic and foreign commercial banks, in order to ensure the realization of internal audit functions of A bank and promote healthy and stable development of A bank and internal audit.This paper consists of six chapters. The first chapter introduces the background and practical significant of the research of internal audit related issues and also elaborates the overall framework, research content, design and method as well as innovations and expected research results of the paper. The second chapter outlines the internal audit theories and mainly covers the definition and history of internal audit, the framework and relevant concepts of internal audit, the main theoretical basis of this paper as well as literature review which includes current situation and deficiencies of domestic and internal researches. The third chapter presents current situation and comparison of internal audit of domestic and foreign commercial banks, including status quo and comparison of domestic and foreign commercial banks, and definition, evolution, organizational structure and development status of internal audit of A bank. Chapter four accounts for the problems of internal audit facing A bank and the analysis of the causes. Such problems as low audit level and low audit value, poor audit quality, low audit efficiency, obsolete audit methods and poor auditor quality are covered and the causes are as follows:audit transformation is not yet completed; there is a lack of auditors; audit information is asymmetric; computer auditing technology is backward; audit methods are unitary; there is a lack of effective audit communication; channels of promotion and communication are narrow; there is the lack of professional ethics and comprehensive quality; appraisal is irrational and performance assessment is unreasonable. Chapter five describes the measures to cope with the problems of internal audit facing A bank and indicates that, to resolve the abovementioned problems and realize the transformation of audit functions from the traditional account audit to risk based audit and finally to value added audit, the scientific audit, it is necessary to establish scientific audit values, scientific operating system of internal audit and scientific and innovative audit methods, enhance advanced audit techniques, establish a scientific performance appraisal system and fully mobilize the enthusiasm and initiative of auditors. Chapter six gives the conclusion. It is pointed out that audit transformation is never perfectly completed but should always be performed and improved and transformation of audit functions can only be achieved by means of vigorous promotion of audit transformation, clear function orientation and improved internal audit models and professional competence of auditors, thereby better promoting healthy development of A bank.By combining theory and practice, this paper analyzes the current problems of internal audit facing A bank and the causes of these problems by means of theoretical derivation, case analysis and induction based on a summary of financial and management theories, latest definitions and operation standards of internal audit stated in IIA as well as the problems in actual work, and measures to transform audit concepts and realize value increase are proposed based on advanced internal audit experience of domestic and foreign commercial banks. The paper is aimed to play a certain guiding and reference role in improving internal audit level of our bank, promoting our business development and improving overall quality of our auditors.