| In the process of financial integration and liberalization, financial risk amplified rapidly. Because of the diversification of the manage goals, Chinese commercial banks, as the financial main body, haven’t input enough resources to adapt to the new risk management. So the effective internal control management has already become to the first defense line for commercial banks guarding against of risk. From the view of the internal audition acting as the third line of defense, promoting the system of internal control evaluation is important to maintain the asset integrity, guarantee the fluidity and legality.Using comparative analysis and empirical analysis, the thesis attempts to show the status quo and inefficiency of internal audit of commercial banks, and thereafter the weakness in internal control and corporate governance of commercial bank of China.Firstly, the thesis elaborates the internal audit status quo. Secondly, by evaluating the special requirement raised by the banking industry, it analyze the present improvement of internal audit in commercial banks. Following that is a deep demonstration about the issues and limitations in auditing profession, and proposes several ways to solve the problem using Audit Department in X Bank as an example. Last but not least, the thesis lists several recommendations for the internal audit development.This paper argues that the current internal audit in commercial banks lacks two substantial quality:independency and effectiveness, and the audit environment is not supportive. This paper suggest that an integrate accountability mechanism is necessary to solve the independency problem, while audit quality management is the way to realize audit work effectiveness. On the other hand, this paper tries to discuss off-site internal audit management, the working ability and attitude of internal auditors and audit data quality control, and explore improvements. |
