The Study On The Efficiency Of Internal Audit In The Bank Of China Western Region

The particular concern about internal control issues in commercial banks can be traced back to the mid and late of 1990s in the last century. At that time, some banks with a long history and power led to losses and even bankruptcy because of management problems. Such as the failure of British Bahrein bank, the crisis of France Lyon Trust Bank and Italy Naples Bank, the closing down of a number of banks and finance companies in Japan and the financial crisis in some countries of Asia. Consequently, the Basel Committee on Banking Supervision issued Basic Principles of Bank Internal Control System and Internal Audit Reports. The banking supervision departments of every country have taken measures to strengthen the management of internal control in commercial banks. In China, when the four major state-owned commercial banks continue to push forward the comprehensive reform, some big cases frequently exposed, and this raises the attention of the management and risk control capabilities in state-owned commercial banks again. Therefore, this paper will undoubtedly have important meaning on how to improve bank manegement mechanism and the scientific manegement level by analyzing the current banking situation of internal audit in the western of China on the basis of the draw on the international experience.Based on study of the west bank, this paper can be divided into six parts : Chapter 1: introduction. Mainly introduces the background and significance, research ideas and innovation, and the literature review. Chapter II: connotation and development of bank internal audit. The main contents are the definition, connotation, reasons, objectives, principles,operation and the development process of the banks internal audit. Chapter III: analysis of the status quo of bank internal audit in the west. The main contents include: the status quo and the main problems of internal audit in the west bank., the case analysis the headquarters of Agricultural Bank in one western province. Chapter IV: efficiency analysis of the bank internal audit. The main contents include: the review and evaluation of efficiency study on bank internal audit , the game model of bank internal audit, the effect of audit penalties and audit covering amount to audit efficiency, the analysis of audit collusive behavior. Chapter VI: countermeasures and suggestions. Put forward the specific policy proposals in connection with the status quo of the western banks.