Research On The Risk-oriented Internal Audit Of HX Commercial Bank

Based on the theories of risk-oriented internal audit and the researches related to internal audit of banks at home and abroad,combining the environment and background of HX Commercial Bank,this paper analyzes the internal audit situations of HX Commercial Bank,and studies how to apply modern risk-oriented internal audit theories into practice so as to offset the shortcomings of the current internal audit mode of HX Commercial Bank,improve internal audit quality,and build a more sound risk-oriented internal audit standard and system.Other objectives also include:focus limited internal resources on high-risk areas of the audited units,improve the risk prevention&control system of commercial banks,and increase corporate value.The results showed that the risk-oriented internal audit of HX Commercial Bank had the following problems:the three-level management system made the management difficult;grass-roots audit staffs were not independent enough;the division of professions was unclear;the scientific overall allocation of audit resources and the rigid project management could not meet requirements;the audit risk evaluation system was neither perfect and nor playing the role of the 3rd line of defense effectively;the depth of internal audit work was insufficient;staffs did not adapt to the approaches to audit work;some work was not forward-looking,staffs failed to predict the trend of operational risks in certain areas and branches,and the understanding of global and systematic issues was insufficient;resource supply and demand contradictions were prominent,and personnel quality and capability were insufficient,etc.Meanwhile,though the audit information management platform of HX Commercial Bank has been built and put into use,currently,it is mainly used as a project management and administration platform for audit projects and comprehensive management.It is not providing all functions such as data query,data analysis,data monitoring,risky customer prediction,and illegal business reminder according to the strategy of "Global Planning,Stepwise Implementation”determined in the initial stage of system construction.Besides,modern internal audit technologies are not effectively used,either.At last,based on the case analysis results,this paper provided a summary and presented detailed measures to help play the risk-oriented internal audit function of HX Commercial Bank,including:further reform and improve the internal audit organizational structure,promote the transformation of the internal audit function,improve audit technologies and methods,improve internal audit management mode and operating mechanism,and strengthen the construction of audit teams and culture.