Research On The Internal Audit Of City Commercial Banks

The internal audit of commercial banks is an important protection mechanism to preventthe banking risk. Listed along with the commercial banks and the accelerated pace ofcross-regional business, its risk management capability is faced with the test of more research.How to improve the internal audit system, to overcome the difficulties of the work, give fullplay to the internal audit function to improve the level of banks’ risk management, is the keyissues that the person in charge of the audit department of the commercial banks need to thinkabout.This paper reviews the evolution of the internal audit function as well as the factors thatinfluence the effectiveness of the internal audit of commercial banks; summary of theinternational experience about internal audit of commercial banks, further important referencefor China’s commercial banks, city commercial banks’ internal audit work carried outsignificance. The advanced nature of the independence and authority of the internal audit,internal audit means and methods to enhance the quality of the internal audit staff, and are animportant means to improve the effectiveness of internal audit work.F City Commercial Bank’s internal audit practice as the case, through its internal auditsystem, the composition of the audit objectives, the audit process and other aspects of thediscussion, to evaluate F City Commercial Bank’s internal audit found that its internal auditprocess exists:1) the composition of the internal audit committee is not reasonable;2) islagging behind the concept of internal audit;3) audit means out of the bank development;4)the quality of the audit staff to be strengthened and other issues.For the problems exposed in the F City Commercial Bank internal audit work, the paperpresents a sound internal control system; improvement and innovation internal audit conceptand technology, to strengthen the independence of the internal audit; improve the internalaudit system, and enhance the level of audit personnel business; actively carry out off-siteaudit; audits collaboration, enhance cooperation with the business sector proposals. This willnot only help to improve the level of F City Commercial Bank’s risk management, but alsohelp to improve and perfect the all commercial banks’ internal audit work.