Study And Implementation On Off-site Auditor In Credit Card Business For China Merchant Bank

With the development of modern information, internal audit gradually turned theireyes to the information systems and data, the approach audit has changed with it, beforethe on-site audit, auditor establish the model of auditing based on auditing systems andnetworks to mine audit trail, complete business data acquisition and analysis in the off-siteway, and complete the the entire process of audit remotely until the final formation of theaudit report. Thus there gradually emerge the term of the audit model "off-site audit" or"off-site check”.First of all, this article introduced the back ground of the “off-site audit”, the recentdevelopments and the related techniques being used in this area. With the study of thecurrent status, it is found that most of China’s commercial banks have already establishedoff-site audit systems for traditional business, and carried out off-site audit work in retailbanking business, credit business, corporate banking, international banking, off-shorebusiness, futures settlement, foreign exchange investment. But for the credit card business,domestic commercial banks just began to enter a vigorous and rapid stage of developmentfrom2005, so it’s just short time for on-site audit of the credit card business, but with thecredit card business is growing, on-site audit has not complete coverage to meet the workrequirements of the internal audit, credit card off-site audit has become an inevitable trend,there is a lot of value to improve the effectiveness of internal audit.Secondly, the paper analyze the existing on-site audit process and summarized theinadequacies of the current process, and proposed the off-site audit solution to improve theefficiency of the overall internal audit. The paper also introduced three main risk in creditcard business, including the credit risk, the fraud risk and the internal operation risk.Secondly, the paper had the discussion in following aspects regarding theestablishment of the credit card off-site audit system on the basis of the analysis of defectin on-site audit work, and at the angle of risk from the credit card business, combined withthe historical on-site internal audit reports: (1) The definition of the credit card business indicators and monitoring methodologies.This article will select the key indicators of the credit card business, start the detaileddiscussion based on the overall scale of operation, asset quality, customer operation, theintermediary business revenue of these aspects of non-scene indicators of the Interpretationand monitoring methods.(2) Classification according to risk of the credit card business, establish the correspondingmodel monitoring methods in the issuing auditing, customer transaction monitoring,merchant monitoring and internal operational monitoring to, and discuss the data analysis,logic model, harmonization of operating standards in detail.(3) Select the part of the historical business transaction data from the practicality andapplicability point of view, validate and analyze related indicators and models.Finally, on the basis of the study of “off-site” related techniques, the paper will alsohave the overall structure of the off-site system design and describe functionalrequirements and to explore the implementation steps of the off-site audit system, as wellas the potential difficulties in the process of implementation, and make appropriaterecommendations and measures on off-site audit system construction.The research result of this paper has not only certain reference value to theestablishment of the commercial bank’s risk-oriented credit card on-site audit model, butalso on the specific design and construction of off-site audit system.