The Analysis Of Internal Auditing Risks In Commercial Banks

The proportion of its own funds of commercial banks is much lower than that of other companies. Their trading partners, trading character and character of the institutional distribution determine that commercial banks are particular enterprises of much more risks. Modern commercial banks often use many methods to prevent risks, in which internal auditing can be an effective way to control risks. With the developing of the financial institutions, it's so urgent for commercial banks of China to pay more attention to internal auditing to avoid its risks. Internal auditing can find the weakness and defect of the bank management and awoke the commercial bank to improve its management in time.In order to analyze the risks of Internal Audit, we should understand the types, characters and reasons of it in commercial banks. Then we need learn the well performance of internal auditing to prevent risks in western banks. Internal Auditing of Chinese financial institutions has been developed for about twenty years, though we have a certain number laws of Internal Auditing and they have played good roles to avoid risks of banks. We still have quality problems of internal auditing with actual cases in China. We should use some methods to improve risk control over internal auditing in commercial banks in China based on the author's work experience in internal auditing and investigation. These methods include using internal audit risk-oriented mode in the commercial banks to enhance risk management, risk-control and self-evaluation methods, improving the bank's internal control, strengthening the independence of internal audit organizations and improving the abilities of internal auditors in commercial banks. Hope these methods can help to achieve the purpose of control risks in commercial banks.