Research Of The Performance Index System On Management Auditing Of Commercial Banks In China

World-wide bank crises occurred frequently since 1990s. In recent years some cases are exposed in state-owned banks. People gradually realize that governance provides a kind of assurance about setting up marketplace confidence, promoting steady development of business and resisting risk. Some state-owned banks such as CCB, ICBC have carried out a series of important measures on stock system and organizational reform of internal audit. In the hope of improving and advancing the company governs with the aid of strength in various terms, such as overseas investor, capital market and internal auditors. This has provided a historical opportunity for the development of management audit.Modern enterprise theory emphasizes that enterprise is a series of contracts collection, in which the most important is the relationship between the property owner (principal) and the manager (agent). Another words, it is the relationship between principal-agent. This is the common rationale of governance and internal auditing, especially of the management audit. The management audit concerns highly with appraising the situation about agent's fulfilling the accountability, which can effectively reduce information asymmetry as well as moral risk, and which can play a positive role in corporation operation. How to make management audit works effectively, and improve both its efficiency and quality is an important topic facing commercial banks at present.In view of this question, after studying relevant literature, this thesis mainly has done below the rich innovative work:(1) Establishing a "performance index system" propitious to management audit in commercial banks. Management audit in commercial banks in China is still in initial stage, lacking the universally recognized measurement standard. Based on the principle of "Balanced Scorecard", this thesis establishes a "performance index system" propitious to management audit in commercial banks. It includes 26 key indicators such as economic value added, internal control, etc, which will be helpful for the auditors to make scientific appraisal.(2) Establishing a linear regression model to carries on the quantitative analysis to some important indexes in the performance index system.. This thesis establishes a linear regression model, taking economy value added as dependent variable, taking key performance indicator as independent variable, and taking the operation indicators of sub-branches in 2005.So we can know which indicator has great effect on EVA, and can forecast the future of EVA. Making a quantitative analysis help auditors appraise the economy, efficiency and effectiveness.(3) Establishing a nonlinear optimization model to carries on the quantitative analysis to the index of assets deploys proportion in the performance index system. Assets deploys proportion is an important index. This thesis establishes an nonlinear optimization model, to analyze raroc of loan. So auditors can carry on the profound analysis to various reasons on sub-branches deviation most optimum structure, and appraise its management and the policy-making scientific nature, as well as following management potential.The significance in terms of theory and practice lies on:(1)leading auditing method to management auditing, and consciously strengthening the bank-value-paramount philosophy by auditing behavior, and finally achieving auditing goal of avoiding principal-agent risk and improving corporate governance mechanism;(2) Aiming at the existing low efficiency and quality in accountability auditing, this thesis provides a linear regression model and a nonlinear optimization model to improve technologies and quality of auditing.