JS Bank Sent A Study On The Failure Of Internal Audit Institutions To Perform Their Duties

In recent years,the global economic recovery is slow,the domestic situation is complicated and severe,commercial bank management is facing difficulties.As an important part of corporate governance,internal audit of commercial banks has received unprecedented attention.The research on the internal audit are mostly focused on the theories,studies on internal audit of commercial banks is f-ew.This article takes JS bank as an example to study the main problems of the commercial banks’ internal audit and put forward improving measures so as to provide reference for improving risk-prevention ability and value-creation ability.This paper introduces principal-agent theory,as the logical starting point and the theoretical basis of the internal audit.Basis on the analysis,points out deficiencies of JS bank in positioning of the internal audit,boundary of responsibility,independency,objectivity,professionalism and authority.Meanwhile internal audit itself also has problem in resources efficiency,schedule,technical means,evaluation incentive,auditing culture issues;Puts out that these problems are the results of inadequate functioning of JS bank internal audit and they are related to corporate governance’s structure and mechanism,thus put forward suggestions based on theoretical logic and practical experience.Generalizes the main research conclusions and put forward prospects for further research and practice.JS bank internal audit has some shortcomings in terms of independence,and relationship,and function,according to agent problems etc.,give advices of function orientation and play.