Investigation On Application Of The Balanced Scorecard (BSC) In Economic Responsibility Audit Of Agricultural Bank Of China

In 2010, the Agricultural Bank of China completed the share reform and listed successfully. According to the requirements of joint-stock banks corporate governance, the Agricultural Bank established the internal audit system which is under the direct leadership of the board of directors. The economic responsibility audit of Agricultural Bank of China is one part of the important businesses of internal audit. Because of its extensive application and high frequency of utilization, the effective conduct of the economic responsibility audit plays an important role in correctly evaluating and employing the cadres, improving the managerial and administrative level, strengthening the internal control, and preventing and resolving various risks. However, the economic responsibility audit has always been limited to the business, financial and institutional compliance level and the digitized increase or decrease of absolute quantity. The audit often measures and evaluates a leader's management level during his/her tenure according to the standards of the established rules and regulations and the assessment objectives. Such audit is short of an intuitive and comprehensive evaluation system for the examination of the administrator management level, and the evaluation results can't fully and objectively reflect the incumbent's working level and ability in all aspects. The paper, aiming at using the four-dimensional evaluation model of the Balanced Score Card for reference, explores the comprehensive and three-dimensional evaluation of the management personnel from the four aspects of finance, customer, internal operations and learning and growing so as to achieve the combination of the tangible and intangible resources, make up the insufficiency of the traditional mode and establish a more scientific and reasonable evaluation index system.This paper has described several methods of the current economic responsibility audit and its significance of Agricultural Bank of China and pointed out the deficiency of the current methods, given a general introduction of the research state of the balanced scorecard at home and abroad, and discussed the feasibility of the balanced scorecard applied in economic responsibility audit for the first time. On this basis, the selections of the appropriate indicators and the settings of the appropriate weights according to the four dimensions of the balanced scorecard are further discussed, and an economic responsibility audit process under the framework of the balanced scorecard is simulated. It stresses the significance and the practical senses of the new process applied in the Agricultural Bank economic responsibility audit, analyze and expect-the prospect of the application of the new auditing process.By the above arguments, this paper innovates the idea of the balanced scorecard application in Agricultural Bank internal economic responsibility audit, and simulates a new auditing process with the model of the balanced scorecard in reference to the original auditing model by screening key indicators and setting appropriate weights. This is an important breakthrough to the auditing system revolution and the transformation of the auditing idea. The new process decomposes the economic responsibility audit into quantifiable indicators to accomplish the union of the audition's being standard, comprehensive, subjective and effective. And it plays an important role in setting up a scientific economic responsibility auditsystem, and improving the prediction of auditing. With the advocating of the new process in Agricultural Bank economic responsibility audit, it is surely to be of help for the evaluation and the selection of senior management personnel. It can also ameliorate and promote the management mechanism of Agricultural Bank and enhance the core competitiveness to be well prepared for the increasingly ferocious market competition from commercial bank.