Research On Value-added Internal Audit Optimization Of J Commercial Bank

The banking industry of China has promoted reforms in various ways along with China’s rapid financial market growth,while the internal audit of commercial banks is also facing new requirements,in the changing external environment and fierce financial competition to assist enterprises to continue to move forward towards the established goals.The corporation value would be lifted by changing the way of internal audit to value-added.The internal audit objectives are not limited to the discovery and identification of risks in the process of enterprise development,it may also includes consulting services of how to develop and achieve value-added benefits for those firms,so as to truly highlight the value of internal audit.This paper specifically focuses on the relevance theories of internal audit through valueadded way,with vary kinds methods of analysis and case analysis from research,which may include papers or thesis from domestic and all over the world about how to implement valueadded internal audit in commercial banks.It also covers the concept and characteristics of value-added internal audit and distinguish the differences from traditional audit.Finally this paper takes J Commercial Bank as an example about value-added internal audit analysis.Start with how J Commercial Bank implement its internal audit with the introduction of the background information,and take the bad debt write-off business as an example to analyze,including the audit project focus and value-added audit performance,and then put forward the value-added internal audit defects,such as:internal audit independence is not high,internal audit process to be optimized,audit rectification to promote insufficient,internal audit staff quality to be improved,and the deep cause of the problem has been explored.It is summarized that the main reasons are imperfect internal governance structure,low level of off-site audit,insufficient use of audit effectiveness,inadequate management of internal auditors,and unreasonable setting of internal audit assessment indicators.Ultimately,suggestions of how to promote value-added internal audit implementation and application in J Commercial Bank would also be mentioned,for example,improving the value-added internal audit organization structure,perfecting the value-added internal audit process,strengthening the professional construction of value-added internal auditors,and perfecting the value-added internal audit appraisal system.Based on the problems faced by J Commercial Bank,this paper focuses on the root causes with feasible solutions and measurements,so the expected internal audit result could be achieved in J Commercial Bank.