Research On The Influencing Factors Of Internal Audit Quality Of Commercial Banks

The developmental level of the financial economy has a crucial impact on the overall economy of a country.As the core component of the financial economy,the robustness of commercial banks’ management and development is related to the health and stability of the financial order and the economic system.However,as the special enterprises operating currency and credit,commercial banks have high risk,high liability and instability,and their survival and development are closely related to risk.Facing the increasingly opening financial market and the increasingly fierce competition in the banking industry,effectively prevent and control the financial risks and strengthen organizational governance have become an urgent need of commercial banks.As an independent and objective consultation confirmation activity,internal audit plays an increasingly important role in organizational governance,risk management and internal control.High quality internal audit has become the inherent need for the development of commercial banks.However,compared with foreign commercial banks,the development time of internal audit of commercial banks in China is short and the internal audit work is not perfect.Therefore,improving the internal audit quality of commercial banks has become the most important factor in the current risk prevention and control of corporate banks.It is of great significance to ensure the healthy and stable development of commercial banks in the fierce market competition.It is of great significance to improve the quality of internal audit of commercial banks.Firstly,based on the theory of principal-agent and transaction cost,this paper analyzes the current situation of the internal audit quality of A-share listed commercial banks from four aspects of the internal audit quality of commercial banks,and points out the internal audit of commercial banks exists problems such as independence becomes formalistic,staff lack of professional competence,deficiency of institution scale,and limited responsibility,thereby gives a detailed analysis for the cause of the problems.Secondly,on the basis of the current situation and the causes analysis,this paper puts forward five assumptions based on the mechanism of the corporate governance environment of the commercial banks and influence of the internal audit theory to the internal audit quality of the commercial banks.The paper chooses the data of 14 A-share listed commercial banks in China in 2010-2015 as the research sample,and establishes the multiple regression model of panel data to verify what factors can influence the internal audit quality of commercial banks.Through the regression analysis,the paper draws a conclusion that the independence of the board of directors of commercial banks and the perfection of the internal audit theory are positively correlated with the internal audit quality of commercial banks.The financial background,senior management and external audit quality are not significantly related to the quality of internal audit of commercial banks.Finally,this paper summarizes the main research conclusions,and puts forward some suggestions on strengthening the internal audit quality of commercial banks.