Research On Internal Audit Of Credit Business Of GY Bank

The penalty announcements and regulatory reports issued externally by China’s Audit Office as well as the CBRC show that credit violations by commercial banks occur frequently.On the one hand,external regulators are constantly issuing and improving various compliance documents,but they are unable to accurately and effectively restrain and supervise the credit violations that exist.On the other hand,credit violations are mostly caused by poor internal management of commercial banks such as inadequate supervision,irregular credit system and lack of risk awareness.Therefore,the control of credit irregularities and the reduction of credit risks should focus on the internal supervision of commercial banks,which highlights the key role of internal auditing of credit business.In addition,internal audit in China started late and the quality level of credit internal audit is not consistent among banks,and there are still many deficiencies and defects.Therefore,it is particularly important for the sustainable development of commercial banks to conduct internal audit research and make recommendations for optimization of credit operations.This paper analyzes the current situation of internal audit implementation in GY Bank’s credit business,firstly,it gives a brief introduction to the development status and risk strategy,then it examines the basic situation of credit business from three aspects:the basic process of GY Bank’s credit business,the quality of credit assets and the credit irregularities announced by the Audit Office.Then we analyze the current status of internal control of credit business from three aspects:internal audit techniques and methods,internal audit structure and credit internal audit system of GY Bank,and study the internal audit process.After analyzing the current status of credit internal audit implementation,this paper evaluates the quality of internal audit of credit business.The evaluation of internal audit quality draws on the evaluation indexes of China’s Internal Audit Quality Manual,uses the AHP tool and expert scoring method,and obtains the information required for quality evaluation by conducting interviews and reviewing internal materials.The quality evaluation system was constructed from the four major aspects of professional quality and education,audit procedures,audit effectivenes and audit environmnent,with a total of 38 evaluation indicators in 18 evaluation elements.After combining the interview results,the current situation of credit inernal audit implementation and credit internal audit quality evaluation,the shortcomings of credit internal audit were summarized.They are mainly reflected in three aspects:(1)unsound internal audit management mechanism;(2)imperfect talent team construction and continuing education;and(3)backward informationization level.Finally,optimization suggestions are made for GY bank credit internal audit:first,improve the internal audit management system;second,strengthen talent management and education and training;third,carry out information technology audit and build a data platform.In conclusion,this paper aims to be able to better standardize the internal audit management of commercial banks’ credit business,ensure the good quality of credit assets,improve the level of credit risk control,guarantee the healthy development of GY Bank,and provide reference for the development of internal audit work of other commercial banks.