Commercial Bank A's Intermediary Business Audit Case Analysis

Nowadays,many commercial banks start their business transformation,accelerating their intermediary business development.For the rapid development of the intermediary business market,the regulatory authorities have introduced a number of regulatory measures to regulate the operation of the bank.With the scale of the business and the number of regulations increase,the risk of audit misstatements becomes higher.The study takes the external audit situation of commercial bank A as an example,analysis the major problems in the external audit work and introduce the improvement methods,focus on the characteristics of the business.The study can provide guidance to the practice of intermediary business audit in commercial banks and supplement the research on the theory of intermediary business audit at home and abroad.Firstly,the study analysis the risks and difficulties that may be faced in external audit,focus on the characteristics of intermediary business.Secondly,the study introduce the external audit work executed by accounting firm B for the abroad intermediary business part in the 2016 financial report of large state-owned commercial bank A.The study takes the work as an example,analysis the problems in four audit work steps,including the audit plan drafting,risk identification and evaluation,further audit procedures' designation and completion the audit work.Based on the particularity of intermediary business,this study also analyzes the deficiencies in the audit case,including,(1)The audit plan fails to pay enough attention to the pre audit work.(2)The risk identification is not enough,ignore some special risks.(3)Take too heavy consideration on audit risk reduction and ignore to control the audit cost.(4)The designated methods for the risk is lack of specialty.(5)Fail to follow up the key issues timely during the completion step.This study puts forward overall suggestions for the improvement of the problems from three aspects including perfecting audit guide,changing the work concept of accounting firms and strengthening the professional competence of CPAs,then puts forward special suggests for the whole procedures.