Empirical Research On Level Of Internal Audit In Banking And Its Influencing Factors With Data Analyses On16A-share Listed Banks Of China

The significant role of internal auditing is now emphasized in the banking sector which is characterized with high risks. Internal auditing is an independent review and consulting activity designed to help an organization accomplish its effective management and improve decision-making operations. Currently, the internal auditing system within commercial banks no longer restrict to the traditional sense of accounting, financing and auditing. Indeed, its scope is broader and in-depth involving many topics such as risk control, business analysis, as well as the implementation of information technology. As one of the basic conditions of corporate governance, internal auditing also plays a key catalyst for improving an organization’s governance. Therefore, internal auditing would be effective implemented only in the manner of "management control","supervision system" and "management physicians" to ensure the operation of corporate governance could be in order. In this context, this dissertation is aiming to investigate the performance of internal auditing of commercial banks in China through focusing on the linkage between internal auditing and corporate governance. Looking at16listed commercial banks as the sample in the regression models, this dissertation elaborates an empirical application into existing theoretical literatures. The results have demonstrated the influence between the corporate governance and the level of internal audit of listed commercial Banks is positive. Finally, combining with the results and present situation of commercial banks’internal auditing in China and then put forward several relevant suggestions for the improvement of internal auditing performance.