The Study Of Internal Audit Between China And USA Banks

For the long run, internal audit of banks has been the critical part of bank capital market and transactions check. It is also important in internal control of banks. This article takes CITIGroup, ICBC and BOC for example to analyze and compare system, contents and structure of internal audit between China and USA banks. Through deep study, this article found that internal audit organization of USA report directly to the board. The audit committee controls hiring and budget of audit organization. Accordingly, an authoritatively independent audit system is formed. Secondly, the scope of USA commercial banks is very wide and as a result risk initiative internal audit operating system is set up. This kind of system includes two sub-systems. One is the whole process oversight system which makes flow as the core. The other one is the assessment system which is from several aspects and emphasize on risk class. At the same time, audit employees meet experience and expertise requirements which form the basis of effective performance of audit function. Comparatively, domestic commercial banks have weakness in audit system, contents and membership structure. In China, audit organizations are under double management and are not independent in hiring and budget. Chinese audit focus more on afterwards audit rather than beforehand audit, focus more on organization audit rather than risk control. At the same time, the result is ignored. The level of employees is ragged as well. At last, on the basis of advanced experience of American internal audit in commercial banks, the author provides the way and steps for the further internal audit innovation in China through comparison and research.