On The Internal Audit System Of PSBC

China Post Savings Bank Co.,Ltd (PSBC) was officially inaugurated in March,2007, marking the development of postal financial, thus opened a new historic chapter, which means that the Postal Savings Bank of China began to carry out business activities, to improve management and focus on management benefit in accordance with the requirements of the modern banking business model. At the same time, a series of internal control policies have also been introduced, in order to adapt to the postal savings reform, financial and economic development, and these new norms, in January2010, the Postal Savings Bank began to form a new centralized audit mode in the50secondary branches of the PSBC, which started on the audit of the Postal Savings Bank. With the Postal Savings bank system reform gradually carrying out, and the business field and client category expansion, the internal control and internal audit in the enterprise risk management play an important role, but compared to the internal control and risk management requirements with the business development, there are a lot of inappropriate parts. On the one hand, most of the Postal Savings Bank of China outlets for the agricultural market, single business and retail services-based, the scattered business branch distribution, complicated situation. Furthermore, risk awareness and prevention of the internal audit which has the functions of supervision and control is not enough; on the other hand, under the conditions of the rapid development of new businesses, as the important means of improving the internal control and the value-added,the internal audit has a series of problems which has seriously not suited to the requirements of the development of the new business model, such as:the backward of the audit idea, the dependence of audit institutions, Insufficient audit, low audit results conversion rate, and etc. Therefore, it is urgent to improve the internal audit of PSBC to adapt to the needs of the transformation of the business model of the Postal Savings Bank of China. The reform demands for quickly establishing a commercial bank under the modern enterprise system, what kind of internal audit is needed is the current problem that the postal savings must been faced with.It is just five years since the PSBC’s formation, and is just2years ever since the concept of internal audit began to use in PSBC, thus, a long road need to go, the experiences that can learn is not much, the research in this aspect is not advanced, and contents are remained in the previous postal financial period,the study of systemic is poor focusing only on the China Postal Savings Bank’s audit system and the specific operational areas, lack of comprehensive study of internal audit from theory to practice. Moreover, research recommendations are trapped under the former system of internal audit of the Postal Savings Bank of China; it is difficult to make substantial solution.Therefore, this study hopes to start from the theoretical basis of the internal audit and the development status through the opportunity of PSBC’s transition to modern banking operations, mode. Combined with the existing problems and development trend, through studying domestic and foreign banks advanced practice, the internal audit system of the Postal Savings Bank of China has been studied, the suggestions and countermeasures have also been given. Finally, in conjunction with the work practices, a suitable evaluation index system of internal audit of the Postal Savings has been designed, and the evaluation conclusions and recommendations of the follow-up study have also been described in this article.