A Study On The Audit Of Internal Control Of Chinese Commercial Bank Credit Operational Risk

The bank deals in currency, with the feature of high debt operationand high risk. The operation of bank has close relationship with economyand social life, the generation of bank risk has universal influence anddestructive for economy as well, hence, bank risk is the focus oftheoretical circles, government and public all the time, this made therisk prevention and the crisis management become the core mission of bankself-regulatory. The prevention of operational risk of credit is one ofthe most important missions about bank risk regulatory.In the past few years, the business bank obtained great achievementin Internal control audit to prevent operational risk of credit. However,in the present, the audit of internal control about operational riskcredit still lead a number of banks suffered losses because of operationalrisk credit. Obviously, the current audit strategies needed to be improved,especially after the United States enacted the "Dodd-Frank Wall StreetReform and Consumer Protection Act" which provide new viewpoints aboutfinancial regulation and consumer protection. This bill not onlycontributes to maintain financial stability, but also provide referencefor the business bank audit of internal control.This article,in the context of promulgating the "Dodd-Frank WallStreet Reform and Consumer Protection Law",is trying to analyze theoperation of China’s commercial banks credit risk internal audit problemsfrom the start of the credit risk and operational status of the internalcontrol audit, on researching the content and legislative ideas of "Dodd-Frank Wall Street reform and consumer Protection Act,"the China’scommercial banks to strengthen credit risk internal audit operationaloptimization program is explored, and combined with the case it willspecifically analyze the implementation of the internal control audit. The text is divided into seven parts, including:The first part is the introduction. In this section the researchbackground, research purpose and significance of research methods areclarified, and the research ideas and innovation are specified. Based onthe inspiration of the commercial banks credit operational risk internalaudit of "Dodd-Frank Wall Street Reform and Consumer Protection Act",the study is started under the current complex international financialenvironment.The second part includes the literature review. In this section, atthe first the related researches on the current commercial bank creditoperational risk and the operational risk of the credit audit of internalcontrol are summarized, and the latest trends and perspectives of thebank’s internal control audit are described.In the third part, the status quo of China’s commercial bank creditand operational risk of the internal control audit is analyzed. Based onthe formation mechanism of action of the China’s commercial banks’ creditrisk in this part, the importance of the internal control audit for theoperational risk control credit is explored, and the status quo analysisof the internal audit of operational risk about the commercial bank iscurrently through using the analysis method of SWOT.The fourth part includes the inspiration of commercial banks creditoperational risk internal audit of "Dodd-Frank Wall Street Reform andConsumer Protection Act". The background, content and legislative ideasabout "Dodd-Frank Wall Street Reform and Consumer Protection Act" inthis section are described deeply, and then according to the specificcontent of the bill, the impact of the operational risk credit audit ofinternal control for the commercial bank is analyzed;In the fifth part, the strategy of the operational risk credit auditof internal control about China’s commercial banks is included. In thelight of the revelation on the Act for the operational risk credit auditof internal control in the fourth part, combined with the actual situationof China’s commercial banks, the program for strengthening China’scommercial banks to optimize operational risk internal audit is proposed.The sixth part is about a typical case of the operational risk credit audit of internal control of X bank. The violation of the bank’s creditis made for example in this part, and the deficiencies of the bank’soperational risk credit audit of internal control are studied,meanwhile,in accordance with the previous findings, the solving strategyis proposed, and the practical operation of this qualitative research isverified.The last part is the summary. The writing and content of the full textis described and summarized in this chapter, and the innovation of thistopic is indicated, and then the inadequacies of this study are made, inhope to continue this research in the future.