Research On The Problem Of Risk Management Based Auditing In Banking Based On The Theory Of Value Chain

Bank is a special financial enterprise which manages currency. Its risk management level not only concerns its own existence and development, but also concerns the prosperity and stability of the whole economy. Bank internal audit activity plays an important role in governance, risk management and control. The Institute of Internal Auditors (IIA) (2004) points out that internal auditing is a kind of independent, objective affirmation and consulting engagement which aims at adding value for the enterprise, and improve the management. It assesses and improves risk management, control and the effect of governance through systematic and normative method and helps company realize its goal. Sarbanes-Oxley Acts, passed by American Congress in 2002 points out that board of directors, top administrator, external and internal auditor, as the foundation of effective corporate governance, are important parts of engaging the duties of governance and internal control. So bank internal auditing has the responsibility for helping the company improve the risk management. IIA points out in Standards for the Professional Practice of Internal Auditing 2110-1 that auditors, who play insulting role can help the company resolve the risk management by finding the way of assessing and risk management and control measures, which means internal auditor may find out new ways of risk management and suggest the organization to use it in order to help achieve the goal of organization and the value of auditing.This essay absorbs the latest idea of the Standards for the Professional Practice of Internal Auditing -that newly revised by IIA in 2004 and Enterprise Risk Management -Integrate Framework passed by COSO, apply the new pattern of internal auditing -risk management based audit to the banking system, and using methods such as induction, deduction case analysis, etc. put forward synthetically the management way of risk chain and carry out the risk management audit engagement according to it. I believe this way can effectively and timely find the problem during the risk management and it is good to improve the level of bank risk management. At the same time, it is also a new research approach for bank risk management based audit.